Kroger Co (NYSE:KR) delivered strong results for the second quarter on the back of its "solid business momentum and strong execution," according to Telsey Advisory Group.
The Kroger Analyst: Analyst Joseph Feldman maintained an Outperform rating and price target of $82.
The Kroger Thesis: The company reported adjusted earnings of $1.04 per share, beating the consensus of 99 cents per share, driven by healthy ID sales growth, Feldman said in the note.
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The strong ID sales, ex-fuel, was driven by "outperformance in pharmacy, continued strength in fresh and digital, and improvement in grocery volumes," he added.
Kroger raised its 2025 ID sales, ex-fuel, guidance to 2.7%-3.4%, from its earlier forecast of 2.25%-3.25%, "reflecting the 2Q25 beat and confidence in the trend," the analyst stated. The company also raised the lower end of its 2025 earnings guidance range to $4.70-$4.80 per share, from $4.60-$4.80 per share, he said.
"The company's emphasis on simplifying the organization, improving the customer experience, and creating value is showing signs of early success," Feldman further wrote.
KR Price Action: Shares of Kroger had risen by 1.8% to $68.44 at the time of publication on Friday.
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