Albertsons Companies logo above fresh produce displays highlights consumer spending trends. Key Points Albertsons is recovering following the failed merger with Kroger, and it's trading at a deep value. The dividend is an added attraction, paying more than its peers, sustainably, with growth in the forecast. Institutional and analyst trends suggest this stock was accumulated in 2025 as its price fell, setting the stage for a robust rebound. Interested in Albertsons Companies, Inc.? Here are five stock ...

Core Viewpoint - Albertsons Companies Inc. is experiencing a decline in stock price, but there is a positive sentiment among analysts regarding potential earnings growth, which may lead to a trend reversal in the future [1][3][4]. Group 1: Stock Performance - The stock price of Albertsons is currently $16.38, reflecting a slight increase of 1.80% or $0.29, after a decline of 5.7% over the past four weeks [2][5]. - The stock has fluctuated between $15.95 and $16.68 during the trading day, indicating volatility [2]. - Over the past year, the stock reached a high of $23.20 and a low of $15.80, showcasing significant price movement [3]. Group 2: Analyst Ratings and Market Sentiment - Telsey Advisory maintains an "Outperform" rating for Albertsons, with a revised price target adjusted from $24 to $22 [1][5]. - There is a strong consensus among Wall Street analysts to raise earnings estimates for Albertsons, suggesting a potential trend reversal for the stock [3][4]. - The current market conditions and analyst sentiment indicate potential opportunities for investors, particularly due to the stock's oversold status [4]. Group 3: Company Overview - Albertsons is a leading grocery retailer in the United States, offering a wide range of products including groceries, pharmacy services, and fuel [1]. - The company competes with major grocery chains such as Kroger and Walmart [1]. - Albertsons has a market capitalization of approximately $9 billion, with a trading volume of 3,323,899 shares on the NYSE [3].

Key Takeaways ACI's Q3 EPS was $0.72, beating estimates, while net sales rose 1.9% y/y.Albertsons saw identical sales up 2.4%, led by 18% pharmacy growth and a 21% jump in digital sales.ACI's gross margin fell 50 bps as digital and pharmacy mix, pricing investments, and costs weighed.Albertsons Companies, Inc. (ACI) reported third-quarter fiscal 2025 results, wherein sales lagged the Zacks Consensus Estimate and earnings beat the same. On a year-over-year basis, the company’s top and bottom lines increased. ...

Albertsons Companies, Inc. (ACI) has been on a downward spiral lately with significant selling pressure. After declining 5.7% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a ...

Albertsons Companies reported increased sales and strong digital growth in the third quarter (Q3) of fiscal 2025 while net income declined from a year earlier. The US retailer said net income for the quarter ended 29 November 2025 fell to $293.3m, or $0.55 per share, from $400.6m, or $0.69 per share, in the same period of fiscal 2024. Adjusted net income reached $390.3m, or $0.72 per share, compared with $420.3m, or $0.71 per share, a year earlier. Operating income for the period was $489.7m, down from ...

Financial Performance - Net sales for the 12 weeks ended November 29, 2025, were $19,123.7 million, an increase of 1.9% compared to $18,774.5 million for the same period in 2024[9] - Operating income for the 12 weeks ended November 29, 2025, was $489.7 million, a decrease of 5.5% from $518.5 million in the same period of 2024[9] - Net income for the 40 weeks ended November 29, 2025, was $698.2 million, down 11.2% from $786.8 million in 2024[11] - Retail segment sales for the 12 weeks ended November 29, 2025, were $18,926.9 million, an increase from $18,595.0 million for the same period in 2024, representing a growth of 1.8%[84] - Net income for the quarter ending September 7, 2024, was reported at $400.6 million, reflecting a strong performance[15] - The company reported a net income of $293.3 million for the 12 weeks ended November 29, 2025, compared to $400.6 million for the same period in 2024, a decline of 26.7%[88] Assets and Liabilities - Total current assets increased to $7,096.8 million as of November 29, 2025, compared to $6,559.0 million as of February 22, 2025, reflecting a growth of 8.2%[8] - Total liabilities rose to $24,591.5 million as of November 29, 2025, up from $23,369.5 million as of February 22, 2025, representing an increase of 5.2%[8] - Long-term debt and finance lease obligations increased to $8,417.0 million as of November 29, 2025, from $7,762.5 million as of February 22, 2025, an increase of 8.4%[8] - As of November 29, 2025, total stockholders' equity is $2,501.8 million, with a net income of $293.3 million for the period[13] Cash Flow and Investments - The company reported a net cash provided by operating activities of $1,649.6 million for the 40 weeks ended November 29, 2025, compared to $1,922.1 million in 2024, a decrease of 14.1%[11] - Cash and cash equivalents decreased to $195.1 million as of November 29, 2025, from $293.6 million as of February 22, 2025, a decline of 33.6%[8] - The company issued long-term debt amounting to $2,585.0 million during the 40 weeks ended November 29, 2025, compared to $50.0 million in the previous year, indicating a significant increase in financing activities[11] Shareholder Activities - The company declared cash dividends of $0.15 per common share, totaling $77.1 million in the latest quarter[13] - The Company repurchased a total of 64.1 million shares of common stock for $1,211.6 million during the 40 weeks ended November 29, 2025, including $600.0 million under an accelerated share repurchase agreement[23] - The total number of Class A Common Stock shares increased to 600,523,680, up from 594,445,268 shares as of February 24, 2024[15] Tax and Expenses - The effective tax rate for the 12 weeks ended November 29, 2025, was 22.3%, up from 3.5% for the same period in 2024, primarily due to state income taxes and the absence of discrete state income tax benefits recognized in the prior year[24] - Employee costs for the 40 weeks ended November 29, 2025, totaled $9,166.4 million, an increase from $8,956.2 million in the prior year, reflecting a rise of 2.3%[84] - Merchandise costs, including advertising, distribution, and freight, for the 40 weeks ended November 29, 2025, were $44,500.9 million, compared to $43,379.7 million in 2024, an increase of 2.6%[84] Legal and Regulatory Issues - The Company is facing allegations of overcharging federal government healthcare programs, with claims exceeding $100 million before trebling and excluding penalties[63] - The U.S. Supreme Court issued an opinion adverse to the Company on June 1, 2023, reversing lower court rulings in the Proctor and Schutte cases[60] - The District Court set a pretrial conference for the Schutte case on March 4, 2024, with a trial date of April 29, 2024[61] - The Company recorded a liability of $21.5 million for settlements related to opioid litigation in New Mexico and Nevada, which was paid by insurers in Q4 of fiscal 2022[68] - The Company is vigorously defending claims in approximately 81 lawsuits related to the opioid epidemic, with ongoing discovery in some cases[67] Inventory and Cost Management - The Company recorded a LIFO expense of $13.2 million for the 12 weeks ended November 29, 2025, compared to $3.5 million for the same period in 2024, indicating a significant increase in inventory costs[20] - The Company’s inventories consist primarily of finished goods, with LIFO inventory costs based on management's estimates of expected year-end inventory levels and inflation rates[20] Comprehensive Income - Total comprehensive income for the 40 weeks ended November 29, 2025, was impacted by a current-period other comprehensive loss of $15.8 million, compared to a gain of $2.9 million in the prior year[79] - The ending accumulated other comprehensive income (AOCI) balance as of November 29, 2025, was $78.9 million, down from $90.9 million at the end of the same period in 2024[79]

Core Insights - Albertsons Companies, Inc. (ACI) is a major player in the U.S. grocery industry, competing with large retailers like Kroger and Walmart, and offers a wide range of products including groceries, pharmacy services, and digital sales [1] Financial Performance - ACI reported an earnings per share (EPS) of $0.72, exceeding expectations of $0.67, indicating effective cost management [2][6] - The company's revenue was $19.12 billion, which fell short of the forecasted $20.56 billion, highlighting challenges in achieving sales targets [2][6] - The third-quarter performance was bolstered by growth in the pharmacy and digital business sectors, which are strategic areas for revenue generation [3][6] Market Valuation - ACI has a price-to-earnings (P/E) ratio of 9.20, suggesting a relatively low market valuation compared to competitors [4] - The price-to-sales ratio is 0.11 and the enterprise value to sales ratio is 0.29, indicating modest market valuation in relation to revenue and sales [4] Financial Health - The earnings yield stands at 10.87%, reflecting a strong return on investment for shareholders [5] - ACI has a high debt-to-equity ratio of 4.97, indicating significant reliance on debt financing [5] - The current ratio of 0.81 suggests potential challenges in covering short-term liabilities, pointing to areas for improvement in liquidity management [5]

Core Insights - Albertsons Companies is integrating data and artificial intelligence (AI) into its operations, which is expected to be central to its transformation efforts [1][3] - The company reported a year-over-year growth of 2.4% in identical sales and 21% in digital sales for the third quarter of fiscal 2025 [2] AI Integration and Customer Experience - AI is not viewed as a short-term tool but is being embedded into merchandising, labor, and supply chain to create a sustainable competitive advantage [3] - The implementation of AI has led to increases in basket size, repeat customer visits, and overall loyalty [3] - The "Ask AI" feature has resulted in a 10% increase in basket size for users, indicating significant potential as adoption grows [4] Autonomous Shopping Assistants - Albertsons has introduced autonomous shopping assistants that help customers with meal planning, cart building, and completing grocery tasks [5] - These AI tools are designed to provide a seamless and personalized shopping experience, enhancing the omnichannel customer journey [6] Merchandising and Labor Optimization - AI is being utilized to transform category management and improve margins through enhanced merchandising intelligence [6] - Generative AI is being deployed for labor forecasting and scheduling, which enhances productivity and customer service by ensuring optimal staffing [7] Supply Chain Improvements - AI demand forecasting has become crucial for the supply chain, improving forecasting accuracy, fulfillment, quality, and on-shelf availability [8] - The company's tech and AI initiatives are aimed at being scalable and enterprise-wide, delivering measurable impacts and laying the groundwork for future growth [9]

The US Labor Market Has Weakened. What Will Friday's Jobs Report Reveal? 34 minutes ago A report Friday from the Bureau of Labor Statistics is expected to show the U.S. economy added 73,000 jobs in December, while the unemployment rate ticked down to 4.5% from 4.6% the month before, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The job growth would be slightly higher than the 64,000 jobs added in November, when the unemployment rate hit its highest level since 2021. ...

Financial Data and Key Metrics Changes - Identical sales grew by 2.4%, while digital sales increased by 21% [5][22] - Adjusted EBITDA for Q3 was $1.039 billion, with adjusted EPS at $0.72 per diluted share [25] - Gross margin was reported at 27.4%, a decline of 55 basis points year-over-year, but improved sequentially from Q2 [24] - Selling and administrative expense rate decreased to 24.9%, down 33 basis points year-over-year [24] Business Line Data and Key Metrics Changes - Pharmacy and health sales increased by 18%, driven by strong execution in immunizations and core prescriptions [13][23] - Loyalty membership grew by 12% to over 49 million members, enhancing customer engagement [14][15] - The media collective saw double-digit growth year-over-year, contributing to high-margin growth [15] Market Data and Key Metrics Changes - Digital penetration reached 9.5%, with over half of orders delivered in three hours or less [12] - The company continues to gain market share in e-commerce, with sales up 21% this quarter [12] Company Strategy and Development Direction - The company is focused on leveraging technology and AI to enhance customer experience and operational efficiency [8][9] - Strategic priorities include modernizing capabilities, scaling digital engagement, and monetizing the media collective [8][12] - The company aims to grow its own brands penetration from 25% to 30% [16] Management's Comments on Operating Environment and Future Outlook - The operating environment remains mixed, with pressure across income segments, leading to cautious consumer spending [20] - The company is confident in its ability to deliver long-term profitable growth through strategic investments and productivity initiatives [29][30] - The outlook for fiscal 2025 has been updated, with identical sales expected to range from 2.2% to 2.5% [30] Other Important Information - The company is committed to a $1.5 billion productivity plan over the next three fiscal years [18] - Capital expenditures for Q3 were $462 million, focusing on store upgrades and digital technology [25] - The company refinanced $1.5 billion of existing indebtedness, demonstrating balance sheet strength [28] Q&A Session Summary Question: How is the overall pricing environment lined up relative to your initial expectations? - The company is taking a surgical and targeted approach to price investments, seeing positive results in categories where investments were made [39][40] Question: How are you progressing with getting new pharmacy shoppers to purchase more grocery items? - The company is pleased with pharmacy growth, noting that many customers are already shopping in grocery, leading to deeper engagement [47] Question: Can you comment on the potential headwinds for FY26? - The company remains confident in its strategy, with a focus on pharmacy and digital growth, despite potential headwinds from the Inflation Reduction Act [54][56] Question: What are the key drivers for the lower guide on ID sales? - The guidance reflects the impact of the Inflation Reduction Act, with potential upside from pharmacy growth depending on various factors [58][59] Question: How are you tracking against the cost savings plan? - The company is executing well against its $1.5 billion productivity plan, with ongoing process redesign and technology integration [68]