Grocery chain Albertsons slightly misses Q3 revenue expectations

Overview

• U.S. food and drug retailer's Q3 revenue slightly missed analyst expectations

• Adjusted EPS for Q3 reported at $0.72

• Company repurchased $750 mln of shares under accelerated share repurchase agreement

Outlook

• Albertsons expects fiscal 2025 identical sales growth of 2.2% to 2.5%

• Company forecasts fiscal 2025 adjusted EBITDA between $3.825 bln and $3.875 bln

• Albertsons anticipates adjusted net income per share of $2.08 to $2.16 for fiscal 2025

Result Drivers

• PHARMACY SALES - Strong growth in pharmacy sales was the primary driver of the 2.4% increase in identical sales

• DIGITAL SALES - Digital sales increased by 21%, reflecting strategic investments in technology and AI

• STORE CLOSURES AND FUEL SALES - Revenue growth was partially offset by store closures and lower fuel sales

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Albertsons Companies Inc is $24.00, about 40.3% above its January 6 closing price of $17.11

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwMPhXa

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