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Kroger (KR) shares slipped Thursday after the grocery giant reported third-quarter results mostly below analysts’ estimates.
The company reported $33.63 billion in revenue, below the $34.22 billion expected by analysts polled by Visible Alpha. Net income came in at $618 million, beneath the $659.3 million projection.
After stripping out one-time charges like costs related to the chain’s proposed merger with Albertsons (ACI), Kroger’s adjusted earnings per share (EPS) of $0.98 came in a penny above estimates.
Last quarter, interim Chief Financial Officer (CFO) Todd Foley said Kroger was beginning to see “positive customer trends” driving sales, which it expected to continue in the second half of the year. On Thursday, CEO Rodney McMullen said Kroger expects the “macroeconomic environment to remain uncertain near-term.”
McMullen echoed previous comments about the outstanding legal challenge from the Federal Trade Commission (FTC) to Kroger’s proposed merger with Albertsons, saying the company is “confident in the facts and the strength of our position.”
The trial over the FTC’s efforts to halt the merger ended in September, and Kroger has continued to say that it expects the deal to close in the fourth quarter.
Following last month’s presidential election, Kroger and other stocks involved in pending mergers rose on sentiment that a second Trump administration would likely be more relaxed on regulatory issues than the Biden administration has been.
Kroger shares, which had gained about 30% this year through Wednesday’s close, slipped 1% in premarket trading.
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