Correction: Kroger Earnings Preview

Supermarket operator Kroger Co. (nyse: KR - news - people ) reports earnings for the fiscal first quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Kroger, which operates 2,468 supermarkets and supercenters in 31 states, began the fiscal year knowing it would soon face a new competitor in California, Arizona and Nevada. London-based Tesco, one of the world's largest retailers, plans to open its first U.S. stores there this year.

Kroger also began work on new labor contracts with unions in seven states, including locals representing 18,000 Kroger employees in southern California. A labor dispute three years ago led to a strike that disrupted business for about five months at Kroger's Ralphs stores.

Also during the quarter, the food retailer suspended sales of all pet food manufactured by Menu Foods sold in pouches and cans after melamine found in the manufacturer's pet food caused the deaths of at least 16 cats and dogs.

BY THE NUMBERS: Kroger has not offered any guidance for the first quarter ended in April. Analysts polled by Thomson Financial expect earnings of 48 cents per share on revenue of $20.33 billion.

ANALYST TAKE: Bear Stearns (nyse: BSC - news - people ) analyst Robert Summers said in a note to investors Friday that Kroger has experienced "sustained operating momentum".

The company's performance - including rising sales and prices - led him to raise his earning-per-share estimate for the quarter to 49 cents from 46 cents.

STOCK PERFORMANCE: Kroger shares rose 22 percent during the quarter and grew 42 percent during the past year.

source: www.forbes.com