Merger-Bound Grocery Giant Albertsons Beats On Q3 Despite Challenging Economic Backdrop: Details
Portfolio Pulse from Shivani Kumaresan
Albertsons Companies Inc (NYSE:ACI) reported a 2.2% increase in Q3 FY23 sales to $18.56 billion, surpassing analyst estimates. Identical sales rose by 2.9%, with pharmacy sales contributing significantly. Digital sales jumped by 21%. However, gross margin rate fell slightly to 28%, and operating income dropped by 2.8% to $566.1 million. Adjusted EBITDA was down 4.4% Y/Y, but adjusted EPS of $0.79 beat estimates of $0.65. The company announced a Q4 dividend of $0.12 per share, payable on February 9, 2024. ACI shares traded down by 0.52% at $22.87.
January 09, 2024 | 4:33 pm
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Albertsons reported higher Q3 sales and EPS than expected, with strong pharmacy and digital sales growth. Gross margin rate decreased, and operating income fell. A dividend was declared for Q4 FY23.
Albertsons' positive earnings report and sales growth are likely to be viewed favorably by investors, but the slight decrease in gross margin rate and operating income, along with the current stock price dip, suggest a neutral short-term impact. The declaration of a dividend may support the stock price, balancing out the negative aspects.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100