Kroger Co (NYSE: KR) stock rose 8.34% after the company reported better than expected results for the first quarter of 2018. The company’s profit surged, mainly on the sale of its convenience store unit. On an adjusted basis, the company has reported the net earnings of $626 million, compared to $546 million in the first quarter of 2017.

KR in the first quarter of FY 18 has reported the adjusted earnings per share of 73 cents, beating the analysts’ estimates for the adjusted earnings per share of 63 cents. The company said its first-quarter net earnings per share result was slightly ahead of its internal expectations due to the great start to Restock Kroger, including process changes that led to especially strong cost controls and alternative revenue streams. The company has reported the adjusted revenue growth of 3.4 percent to $37.53 billion in the first quarter of FY 18, beating the analysts’ estimates for revenue of $37.25 billion. Total sales, excluding fuel, rose 2.3% in the first quarter over the same period last year. Excluding fuel and the effect of Kroger’s recently-sold convenience store business unit, total sales rose 2.8%

For FY 18, KR expects identical sales growth, excluding fuel, to be in the range from 2.0% to 2.5% in 2018. This reflects the company’s updated definition of identical sales and is supported by its expectation for identical supermarket sales that is the same as its original guidance for the year.  KR has raised the low end of its net earnings guidance range to $3.64 to $3.79 per diluted share for 2018. The previous GAAP range was $3.59 to $3.79. The company has also raised the low end of its adjusted net earnings guidance range to be between $2.00 to $2.15 per diluted share for 2018, from $1.95 to $2.15 previously. The company continues to expect capital investments, excluding mergers, acquisitions, and purchases of leased facilities, to be approximately $3.0 billion in 2018. KR expects its 2018 tax rate to be approximately 22%

Additionally, over the last four quarters, KR has used cash to contribute an incremental $1.2 billion pre-tax to company-sponsored pension plans and $467 million pre-tax to satisfy withdrawal obligations to the Central States Pension Fund. The company has repurchased 110 million common shares for $2.7 billion, which includes $1.1 billion repurchased with after-tax proceeds from the sale of Kroger’s convenience store business unit under a previously-announced $1.2 billion accelerated stock repurchase plan. The company paid $442 million in dividends, and invested $3.0 billion in capital.