Kroger's (KR) shares jumped over 8% in early trading Thursday after the grocery chain reported fourth-quarter profit that beat analyst estimates.

Kroger reported quarterly adjusted earnings per share (EPS) of $1.34, above expectations. Net income of $736 million was up from $450 million in the fourth quarter of 2022, while sales came to $37.06 billion, up from $34.82 in the prior-year period.

The company guided for full-year fiscal 2024 adjusted EPS between $4.30 to $4.50, while analysts were looking for the low end of that range.

Kroger indicated that it still intends to pursue its merger with Albertsons, which was delayed in January, as it continued its pause to its buyback program in the fourth quarter to prioritize the ability to pay down debts once the merger is complete. Last week, the Federal Trade Commission (FTC) filed a lawsuit to block the merger over concerns that it would decrease competition and raise prices.

Kroger has contended that the opposite is true, and merging with Albertsons would allow it to better compete with larger retailers like Walmart (WMT) and Costco (COST), leading to lower prices for consumers. Interim Chief Financial Officer Todd Foley also said the company intends to continue lowering prices and raise pay for its employees this year.