Why Albertsons' Next Earnings Could Pack A Punch In Shaky Economy

Albertsons Companies Inc ACI is scheduled to report its fourth-quarter earnings on April 15.

The company is likely to report in-line quarterly results and project healthy comps for 2025, according to Telsey Advisory Group.

The Albertsons Analyst: Analyst Joseph Feldman reaffirmed an Outperform rating and price target of $26.

The Albertsons Thesis: The company is likely to report same-store sales growth of around 1.7% and adjusted EBITDA of about $822 billion, "supported by continued solid demand for groceries" and benefits from strategic initiatives, Feldman said in the note.

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Recent earnings calls by other companies have been positive, like Kroger Co KR reported same-store sales growth, ex-fuel, of 2.4% and guided to 2025 of 2%-3%, he added.

"Looking at 2025 (includes an extra week), we continue to expect a healthy comp of 1.8%, supported by the continued strength of digital and pharmacy as well as multiple initiatives, including newness in merchandising and loyalty," the analyst wrote.

He expressed his optimism about Albertsons benefiting from the uncertain economic environment in which people focus on groceries in the face of inflation.

Feldman cut the adjusted earnings estimate for 2025 from $2.48 per share to $2.40 per share to reflect the impact of promotions, higher operating costs, and ongoing investments.

ACI Price Action: Shares of Albertsons had declined by 1.4% to $21.06 at the time of publication on Friday.

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