Kroger Stock Rises on Earnings Beat Despite Revenue Miss

Kroger shares climbed 1.85% in pre-market trading after posting Q2 adjusted EPS of $1.04, surpassing analyst expectations of 99 cents. The 11.8% year-over-year earnings growth contrasted with nearly flat revenue of $33.94 billion, which fell short of the $34.1 billion consensus estimate.

Gross margin expansion to 22.5% from 22.1% year-over-year signaled improved operational efficiency. The supermarket chain raised its full-year adjusted EPS guidance to $4.70-$4.80, though the midpoint potentially trails Wall Street's $4.78 estimate.

Year-to-date performance remains strong with an 11.25% gain, extending a 21.43% twelve-month rally. Market reaction suggests investors are rewarding profitability improvements over top-line growth in the current retail environment.