- Albertsons increased its forecast for identical sales for the fiscal year to a range of 2.2% to 2.75%, slightly up from the previous range.
- Adjusted Earnings Per Share (EPS) guidance has been updated to $2.06 to $2.19, compared to the earlier range of $2.03 to $2.16.
- The company’s capital expenditure outlook has been revised upward to a range between $1.8 billion and $1.9 billion.
- Albertsons maintains its forecast for adjusted EBITDA between $3.8 billion and $3.9 billion.
- For the second quarter, adjusted EPS was reported at 44 cents, down from 51 cents year-over-year but above the estimated 40 cents.
- Second quarter identical sales grew by 2.2%, slightly below last year’s 2.5% but above the estimate of 2.04%.
- Adjusted EBITDA for the second quarter was $848.4 million, representing a 5.8% decrease year-over-year, yet it exceeded the estimate of $822.9 million.
- Gross profit margin declined to 27% from 27.6% last year, which was close to the estimate of 27.1%.
- Net sales and other revenue totaled $18.92 billion for the quarter, marking a 2% year-over-year growth and slightly above the estimate of $18.88 billion.
- An Accelerated Share Repurchase Agreement worth $750 million was announced.
- Analysts’ ratings include 13 buy recommendations, 8 holds, and 2 sell recommendations.
Albertsons Cos on Smartkarma
Analyst coverage of Albertsons Cos on Smartkarma showcases insights from Baptista Research, where they published a bullish report titled “Albertsons Is Expanding Profits & Winning Big with Smart Pricing & Cutting-Edge Technology!” The report delves into Albertsons Companies’ recent financial results, including a 2.3% growth in identical sales fueled by an impressive 18% surge in pharmacy sales and a robust 24% increase in digital sales. Despite this growth, the company experienced a decrease in gross margins, excluding fuel and LIFO expense, by 45 basis points due to rising healthcare sales and delivery costs, partially offset by productivity gains.
A look at Albertsons Cos Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Albertsons Companies, Inc., a leading retailer of food and drug products in the United States, is facing a mixed long-term outlook based on Smartkarma Smart Scores. The company scored well in Dividend with a 4 out of 5 rating, indicating strong potential for dividend payouts. However, their scores in Value, Growth, Resilience, and Momentum are more moderate, ranging from 2 to 3. This suggests a cautious approach may be warranted when considering investment in Albertsons for long-term gains.
Despite its solid dividend performance, Albertsons may face challenges in terms of its overall value, growth opportunities, resilience to market fluctuations, and momentum in the near future. Investors would need to weigh these factors carefully before making decisions regarding Albertsons stock. It appears that while the company has strengths in certain areas, there are potential weaknesses that could impact its performance over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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