Kroger financials top expectations in Q1

British online grocer Ocado.

It also bought meal-kit seller Home Chef, as competitors including Albertsons and Amazon also expand into that market.

Kroger’s shares were up 11 percent in pre-market trading and closed at $28.73, up $2.55 or 9.7 percent.

The Cincinnati company’s profit surged to $2.03 billion, or $2.37 per share, mainly on the sale of its convenience store unit. Earnings, adjusted for non-recurring gains, came to 73 cents per share.

Revenue rose 3.4 percent to $37.53 billion.

Analysts expected profit of 63 cents per share and revenue of $37.21 billion.

Other key figures include a 66 percent boost in digital sales and a 1.9 percent boost in same-store sales, topping expectations for 1.5 percent growth.

The company tightened its financial forecast and now expects between $2 and $2.15 per share in profit for the year. The low end of the range had been $1.95 per share.

Kroger shares have dropped nearly 5 percent since the beginning of the year; the Standard & Poor’s 500 index has climbed 3.5 percent. The stock has risen 17 percent in the past 12 months. Kroger shares surpassed Wall Street expectations for the first quarter, after the company sold its convenience stores in favor of focusing on online shopping and a meal-delivery service.