Kroger Co., parent of the Ralphs grocery chain, posted a solid third quarter Tuesday sending its stock rising in early trading.
Kroger reported income of $215 million (30 cents per share), up 16 percent from $185 million (25 cents) for the same period a year earlier. Analysts expected 28 cents per share, according to Thomson Financial.
Sales for the Cincinnati-based grocery chain, the largest in the country, were also up 5 percent o $14.7 billion, falling slightly short of analysts expectations of $14.86 billion.
Kroger also upped its annual growth forecast to up to 10 percent ($1.44 per share), from 8 percent ($1.41 per share), though that will still fall short of analysts’ expectations of $1.45 per share for the year, the company said.
Kroger, whose other chains include Fred Meyer and Food 4 Less, is facing mounting competition from discount grocers such as Wal-Mart Inc. and Target Corp. and growing popularity of specialty grocers like Whole Foods Inc.,
Shares in Kroger were up $1.60 in early trading Tuesday to $23.93.