The Kroger Co. KR reported second-quarter fiscal 2021 results, wherein both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year. Management highlighted that identical sales results exceeded internal expectations. We note that the company’s digital business remains a key growth driver.This Cincinnati, OH-based company has been making significant investments to enhance product freshness and quality, and expand digital capabilities. Impressively, Kroger has been introducing new items under its “Our Brands” portfolio — launched 142 new items during the quarter under review. It also collaborated with ghost kitchen partner Kitchen United to provide consumers on-demand meal pickup and delivery from popular restaurants.Sturdy performance and sustained food at home trends prompted management to raise fiscal 2021 guidance.Let’s IntrospectKroger posted adjusted earnings of 80 cents a share that surpassed the Zacks Consensus Estimate of 63 cents and increased from 73 cents reported in the prior-year quarter.Total sales of $31,682 million came ahead of the Zacks Consensus Estimate of $30,620 million. The metric also rose 3.9% year over year. Excluding fuel, sales dropped 0.4% from the year-ago period. We note that identical sales, without fuel, fell 0.6%.On a two-year stack basis, digital sales surged 114%, while identical sales, without fuel, increased 14%.We note that gross margin contracted 140 basis points to 21.4%. FIFO gross margin, excluding fuel, declined 60 basis points from the year-ago period. This decrease reflects continued price investments as well as higher shrink and supply chain costs, partly offset by sourcing benefits and growth in the alternative profit business. Adjusted FIFO operating profit came in at $947 million, up 5.9% from the year-ago period.The Kroger Co. Price, Consensus and EPS Surprise The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. QuoteOther Financial AspectsKroger ended the quarter with cash of $339 million, total debt of $14,155 million, and shareowners’ equity of $9,258 million. Net total debt increased by $1,235 million over the last four quarters. During the quarter, the company bought back $349 million shares and year-to-date, repurchased $751 million shares. At the end of the second quarter, $779 million remains available under the share repurchase authorization announced on Jun 17, 2021.Management estimates capital expenditures in the band of $3.4-$3.6 billion and expects to generate free cash flow between $1.9 billion and $2.1 billion in fiscal 2021.2021 ViewManagement now envisions identical sales, without fuel, to be down 1-1.5% in fiscal 2021. The company had previously expected a decline of 2.5-4% in the metric. The company anticipates FIFO operating profit in the band $3.9-$4 billion, up from prior projection of $3.5-$3.7 billion.Management now anticipates fiscal 2021 earnings between $3.25 and $3.35 per share. The Zacks Consensus Estimate for earnings for the fiscal year currently stands at $3.09, which could witness an upward revision in the coming days. The company had earlier forecast earnings in the range of $2.95-$3.10 per share.Wrapping UpKroger, which operates in the thin-margin grocery industry, has been making every effort to strengthen position not only with respect to products but also in terms of the way consumers prefer shopping. Realizing the need of the hour, the company has been offering a no-contact delivery option, low-contact pickup service and ship-to-home orders. Kroger launched sushi delivery pilot with DoorDash in three geographies. It expanded to 2,239 Pickup locations and 2,546 Delivery locations.Shares of this Zacks Rank #2 (Buy) company have advanced 19.7% in the past three months compared with the industry’s rise of 5.4%.Other Stocks to ConsiderDarling Ingredients Inc. DAR has a trailing four-quarter earnings surprise of 39.1%, on average. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Walmart WMT has a trailing four-quarter earnings surprise of 14.3%, on average. The stock carries a Zacks Rank #2.Costco COST has a long-term earnings growth rate of 9.3% and a Zacks Rank #2 currently. Bitcoin, Like the Internet Itself, Could Change Everything Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities. Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Darling Ingredients Inc. (DAR): Free Stock Analysis Report To read this article on Zacks.com click here.