(Bloomberg) -- Kroger Co. shares jumped the most in almost 30 years after the company unveiled a profit forecast that signaled new gains on top of a two-year surge in demand for groceries sparked by the coronavirus pandemic.
Adjusted earnings in the current fiscal year will range between $3.75 and $3.85 a share, Kroger said in a statement Thursday. That handily exceeded the $3.44 average of analyst estimates compiled by Bloomberg.
The robust forecast underscores how Kroger is capitalizing on a pandemic-era shift to consumers cooking more at home. The Cincinnati-based grocer is offering more fresh food and investing in online capabilities, Chief Executive Officer Rodney McMullen said.
“We expect the momentum in our business to continue and have confidence in our ability to navigate a rapidly changing operating environment,” McMullen said in the statement. The company is building “competitive advantages” with its technology and initiatives, he added.
Kroger climbed 12% in New York, its biggest gain since 1993 and the largest advance in the S&P 500. It was the second-straight time that the shares have posted a double-digit gain after earnings. The advance came on top of a 52% increase over the 12 months through Wednesday, which was almost double the increase in an S&P 500 index of food and staples retailers.
The company will discuss its long-term growth plan in a business update webcast on Friday.
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