What's Going On With Albertsons Stock Post Q4 Results & Updated Divestiture Plan?
Portfolio Pulse from Shivani Kumaresan
Albertsons Companies Inc (NYSE:ACI) reported a slight sales growth in Q4 FY23 but missed analyst estimates. The company saw a 0.4% year-on-year increase in sales to $18.34 billion, with a notable 24% increase in digital sales. However, adjusted EBITDA fell by 12.8% Y/Y. Adjusted EPS of $0.54 beat estimates. Albertsons and Kroger Co (NYSE:KR) have updated their divestiture plan with C&S Wholesale Grocers to address antitrust concerns, increasing the total store count to be sold to 579. ACI shares rose by 0.17% following the news.
April 22, 2024 | 2:09 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Albertsons reported modest Q4 sales growth but missed estimates, with a significant increase in digital sales. Adjusted EBITDA fell, but adjusted EPS beat estimates. Shares rose slightly.
The mixed Q4 results with a miss on sales estimates but a beat on adjusted EPS, combined with the significant digital sales growth, suggest a neutral to slightly positive outlook. The slight increase in share price reflects this mixed sentiment.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Kroger and Albertsons have updated their divestiture plan with C&S to address antitrust concerns, increasing the store count to 579. This move aims to strengthen their position against regulatory challenges.
The updated divestiture plan with an increased store count to be sold is a strategic move to address antitrust concerns and is likely to be viewed positively by investors, potentially easing regulatory challenges and supporting Kroger's stock in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80