Albertsons Companies (NYSE:ACI) Announces Earnings Results

Albertsons Companies (NYSE:ACI) posted its quarterly earnings results on Tuesday. The company reported $0.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.03, FiscalAI reports. The company had revenue of $18.89 billion for the quarter, compared to analyst estimates of $18.87 billion. Albertsons Companies had a return on equity of 45.59% and a net margin of 0.08%. Albertsons Companies’s revenue for the quarter was down .1% compared to the same quarter last year. During the same quarter last year, the company earned $0.30 EPS.

Here are the key takeaways from Albertsons Companies’ conference call:

• Second-quarter performance remained weak: identical sales declined 0.8%, adjusted EBITDA was $784 million, and adjusted EPS was $0.36. Management said traffic, units, and core retail performance remain below expectations.
• Albertsons is launching an accelerated, comprehensive turnaround review focused on simplifying the organization, improving store execution, reducing shrink and third-party spending, investing selectively in pricing, and evaluating underperforming assets. A detailed plan and refreshed multiyear outlook are expected with fourth-quarter results, followed by an investor day in spring 2027.
• The company declined to update its financial outlook, citing uncertainty over the timing and mix of planned cost reductions, investments, and possible portfolio actions. Management said the core business’s second-quarter exit rate has not materially changed and that lower-income customers remain under pressure.
• Despite the sales pressure, e-commerce grew 11%, pharmacy prescription volume continued to rise, and the company generated $1.2 billion of operating cash flow in the first half, with net leverage at 2.4 times. Management also highlighted meaningful potential for additional savings through centralized buying, goods-not-for-resale procurement, SG&A reductions, and better inventory management.
• Albertsons repurchased approximately $400 million of stock in the first half and has $1.7 billion remaining under its $2 billion authorization, while continuing its quarterly $0.17-per-share dividend. Executives said capital allocation will be reassessed holistically but indicated they expect to remain opportunistic with buybacks.

Albertsons Companies Trading Up 1.7%

ACI opened at $12.75 on Wednesday. Albertsons Companies has a one year low of $10.86 and a one year high of $20.00. The company has a market cap of $6.19 billion, a P/E ratio of 159.34, a PEG ratio of 2.14 and a beta of 0.40. The company has a debt-to-equity ratio of 5.22, a quick ratio of 0.21 and a current ratio of 0.84. The business’s 50-day simple moving average is $12.17 and its 200-day simple moving average is $14.23.

Albertsons Companies Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Friday, October 23rd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 5.3%. The ex-dividend date of this dividend is Friday, October 23rd. Albertsons Companies’s dividend payout ratio is currently 850.00%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on ACI shares. BMO Capital Markets lowered shares of Albertsons Companies from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $23.00 to $12.00 in a research note on Friday, July 24th. UBS Group reaffirmed a “neutral” rating and issued a $12.00 target price (down from $20.00) on shares of Albertsons Companies in a report on Tuesday, July 28th. Barclays decreased their price target on shares of Albertsons Companies from $17.00 to $12.00 and set an “underweight” rating for the company in a research note on Friday, July 24th. Telsey Advisory Group reiterated a “market perform” rating and set a $13.00 price target (down from $22.00) on shares of Albertsons Companies in a report on Friday, July 24th. Finally, Citigroup reissued a “neutral” rating and issued a $11.00 price objective (down from $17.00) on shares of Albertsons Companies in a research report on Monday, July 27th. Five equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $15.31.

Albertsons Companies News Roundup

Here are the key news stories impacting Albertsons Companies this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Albertsons reported adjusted earnings of $0.36 per share, above the $0.33 consensus estimate, while revenue of $18.89 billion was slightly ahead of forecasts. Albertsons second-quarter results
• Positive Sentiment: A turnaround and potential strategic alternatives could unlock value. Albertsons is reviewing its cost structure, business portfolio and operating strategy, while reports indicate the company may again explore a sale. The company is also seeking roughly $8 billion from Kroger over the failed merger, although the timing and outcome are uncertain. Albertsons seeks damages from Kroger
• Positive Sentiment: Leadership attention is increasing. Meg Whitman is taking charge at Albertsons as the grocer attempts to execute a more aggressive turnaround, potentially improving investor confidence in the review process. Meg Whitman takes charge at Albertsons
• Neutral Sentiment: The company is emphasizing a “back-to-basics” plan. Management plans to focus on store operations, customer value, merchandising and productivity, but the benefits will depend on successful execution in a highly competitive grocery market. Albertsons turnaround strategy
• Negative Sentiment: Withdrawal of fiscal 2026 guidance raises uncertainty. Albertsons suspended its full-year forecast while conducting the review, making it harder for investors to value the business and signaling that performance may be less predictable than previously expected. GAAP net income also fell to $51.5 million from $168.5 million a year earlier. Albertsons suspends forecasts
• Positive Sentiment: The quarterly dividend was maintained at $0.17 per share. The annualized payout is $0.68 per share, providing income support while the turnaround proceeds.

Insider Transactions at Albertsons Companies

In other Albertsons Companies news, CFO Sharon Mccollam purchased 9,000 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was purchased at an average cost of $11.48 per share, with a total value of $103,320.00. Following the completion of the acquisition, the chief financial officer directly owned 567,051 shares of the company’s stock, valued at $6,509,745.48. This trade represents a 1.61% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Susan Morris purchased 39,409 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was acquired at an average cost of $11.42 per share, with a total value of $450,050.78. Following the completion of the acquisition, the chief executive officer directly owned 1,092,956 shares of the company’s stock, valued at $12,481,557.52. This represents a 3.74% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have acquired 218,909 shares of company stock valued at $2,515,826. Corporate insiders own 1.18% of the company’s stock.

About Albertsons Companies

Albertsons Companies, Inc is a U.S. food and drug retailer headquartered in Boise, Idaho. The company operates supermarkets, pharmacies and related retail businesses under banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Carrs and Haggen.

Its stores offer groceries, fresh produce, meat and seafood, bakery and deli items, household products, health and beauty products, and pharmacy services. Albertsons also provides private-label products, fuel at select locations, grocery delivery and pickup, digital shopping tools, and customer loyalty programs.

The company’s history traces to 1939, when Joe Albertson opened the first Albertsons store in Boise.