Kroger Believes It's Time to Start Repurchasing Shares
Investors didn't seem to like the third-quarter results for Kroger (NYSE: KR). Shares fell about 5%, following the release of the grocer's latest results before markets opened today.
Both the non-GAAP (adjusted) earnings per share and revenue missed analysts' average forecast for the period. Nevertheless, the company's performance was strong enough for management to maintain its outlook for fiscal 2019. More importantly, its outlook for same-store sales growth in fiscal 2020 implies an acceleration in the key metric.
Despite the Street's bearish response to the report, management seems pleased. Indeed, the company now plans to start repurchasing shares, betting that its investments in its Restock Kroger transformation plan will pay off nicely in fiscal 2020 and beyond.
Source Fool.com
