Albertsons Companies Inc (NYSE:ACI) reported mixed third-quarter fiscal 2025 results, with adjusted EPS beating expectations but revenue slightly below forecasts. The company also narrowed its full-year guidance for identical sales growth and EPS, contributing to downward pressure on the share price in recent trading.
Albertsons reported Q3 fiscal 2025 revenue of $19.12 billion, up 1.9% year-over-year, driven by a 2.4% rise in identical store sales and a standout 21% growth in digital sales. Despite this, net income fell to $293.3 million from $400.6 million a year earlier, with gross margin declining to 27.4% due to higher costs in pharmacy and delivery. Reported EPS was $0.55, while adjusted EPS came in at $0.72, slightly above estimates. Adjusted EBITDA reached $1.039 billion. The company narrowed its full-year guidance, citing competitive pricing pressure, and now expects identical sales growth of 2.2–2.5% and adjusted EPS of $2.08–$2.16.
Investors responded negatively to the updated outlook, and shares slipped following the announcement. Competitive pressures in the retail grocery sector and cost dynamics such as pharmacy and digital delivery impacts were noted as headwinds affecting performance.
Analyst sentiment remains mixed, with some price targets lowered while ratings vary across firms. Investors are watching upcoming earnings calls and strategic developments, including digital sales growth and margin trends, for further clarity on near-term prospects.
#Investor Takeaway
Investors should note that the company’s share outlook faces short-term uncertainty following earnings adjustments.
#Market Impact
The downward revision of guidance may pressure Albertsons' shares in the near term. Caution persists in market sentiment, particularly due to competitive retail pressures impacting growth initiatives.
#What's Next
Investors should monitor upcoming earnings calls and further updates on strategic initiatives related to cost efficiency, pricing discipline, and technology investments.