Executive Summary

• Kroger reported 4Q17 adjusted EPS of $0.63,up 19.6% year over year and in line with the consensus estimate. Revenues were $31.03 billion, up 12.4% year over year and ahead of the $30.82 billion consensus estimate.
• Comps (excluding fuel) were up 1.5%, in line with the consensus estimate.
• For FY18, Kroger expects EPS (excluding fuel) of $1.95–$2.15, below consensus of $2.16, and comps of 1.5%–2.0%, the midpoint of which is above the 1.6% consensus estimate.