WMT - Kroger earnings strong enough to tamp down some fears on inflation effect

WendellandCarolyn/iStock Editorial via Getty Images Wells Fargo thinks Kroger's ([[KR]] +5.2%) beat-and-raise Q1 earnings report should at least temporarily fend off growing concerns around share loss from the pandemic reset and the ability for the grocery store operator to pass on inflation costs. "The gross margin was almost exactly as we expected with a respectable 20bps drop from 2019 levels. Costs were also roughly in line. Fuel detail was not provided, but we are not so sure this line item provided any real help vs. expectations given rising prices this quarter," updates analyst Edward Kelly. After taking in report, Wells Fargo keeps its view that the stock isn't a good long or short at the moment given the balanced risk-reward. The firm's Equal-weight rating on Kroger is consistent with the average Wall Street rating of Neutral. Grocery Outlet Holdings ([[GO]] +3.6%), Sprouts Farmers Market ([[SFM]] +1.1%) and Village Super Market

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Kroger earnings strong enough to tamp down some fears on inflation effect