Albertsons Companies Posts Q2 Earnings Above Street View
Portfolio Pulse from Shivani Kumaresan
Albertsons Companies Inc (NYSE:ACI) reported Q2 FY23 sales growth of 2% YoY to $18.29 billion, slightly above the analyst consensus estimate. The growth was driven by a 2.9% increase in identical sales, a 19% increase in digital sales, and retail price inflation. However, the gross margin rate contracted 30 basis points to 27.6% due to strong growth in pharmacy operations and increases in shrink. The company's Board declared a cash dividend for Q3 of fiscal 2023 of $0.12 per share. ACI shares are trading lower by 0.22% at $22.45.
October 17, 2023 | 1:59 pm
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Albertsons reported Q2 FY23 sales growth of 2% YoY, beating analyst estimates. However, the gross margin rate contracted due to growth in pharmacy operations. The company's Board declared a Q3 dividend of $0.12 per share.
Albertsons' Q2 FY23 sales growth and declaration of Q3 dividend are positive news for investors. However, the contraction in gross margin rate could be a concern, potentially explaining the slight drop in the stock price. The overall impact on the stock price in the short term is likely to be neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100