What's Going On With Albertsons Stock Today?

Core Insights - Albertsons Companies, Inc. (ACI) reported better-than-expected second-quarter earnings and sales, driven by strong digital growth and rising identical-store sales [1][2] - The company announced a $750 million accelerated share repurchase and raised its full-year profit outlook [1] Financial Performance - ACI's adjusted earnings per share for the second quarter were 44 cents, surpassing the analyst consensus estimate of 40 cents [2] - For 2025, the EPS estimate has been raised to $2.15 from $2.11, with an adjusted EBITDA margin of 4.7%, down 32 basis points year over year [5] - Identical-store sales are projected to remain at +2.5%, leading to an adjusted EBITDA of $3.89 billion for 2025 [5] - For 2026, the EPS estimate is lifted to $2.29 from $2.24, with adjusted EBITDA expected to reach $3.97 billion [5] Analyst Ratings and Outlook - Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on ACI, with a price forecast of $24 [3] - Feldman noted that the company's turnaround is gaining traction, setting the stage for healthy growth and profitability in 2026 and beyond, with 2025 seen as an investment year [3] - The stock is currently trading at about 4.7x 2026E EV/EBITDA, which is one to two turns below its historical range, indicating potential valuation upside [4] Strategic Initiatives - Key initiatives include boosting digital engagement, scaling the media collective, enhancing value/loyalty programs, modernizing technology, and driving lasting productivity [4] - Management is focused on pruning underperforming stores and non-core assets to improve overall performance [3]