The grocery chain reported lower-than-expected sales for the third quarter
Shares Kroger Co (NYSE:KR) are trading flat at $59.84 at last glance, after the company reported mixed third-quarter results before today’s opening bell.
While the Cincinnati-based grocery chain beat adjusted earnings forecasts, it missed revenue expectations on the sale of its specialty pharmacy unit and fuel sales that were impacted by lower prices. The company also narrowed its full-year earnings guidance, even after CEO Rodney McMullen said Kroger will soon close its proposed merger with Albertsons (ACI) and bring “meaningful and measurable benefits” to its customers.
Leading up to the event, options traders were more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KR’s 10-day put/call volume ratio of 1.15 ranks higher than 78% of readings from the past year. Already, 4,097 calls and 4,254 puts have crossed the tape this morning, which is double the average intraday amount. Most popular is the weekly 12/6 59-strike put, followed by the weekly 12/13 60-strike call.
Kroger stock is up 28.6% since the start of 2024, though it looks to be running into resistance at the $60 mark. This ceiling is adding pressure to the equity’s attempts to reclaim its April 2022, all-time highs near $61.