Kroger's Stock Surges After Affirming 2016 Outlook

Shares of Kroger Co. surged 2.1% premarket trade Wednesday, after the supermarket chain confirmed its full fiscal year outlook ahead of its investment conference. The company disclosed in a regulatory filing that it expects adjusted earnings per share of $2.10 to $2.20, compared with the FactSet consensus of $2.13. Same-supermarket sales are expected to grow 1.4% to 1.8% for the year, also surrounding the FactSet consensus of a 1.6% rise. Kroger expects product cost inflation, excluding fuel, is expected to continue through early 2017. Regarding company-sponsored pension plans, the company expects expenses of about $80 million, and doesn't expect to make a cash contribution this year. For multi-employer pension funds, Kroger expects to contribute about $260 million this year. The stock has tumbled 26% year to date through Tuesday, while SPDR Consumer Staples Select Sector ETF has tacked on 4.1% and the S&P 500 has gained 3.3%.