Vol: 67,040-$9.684.09%$226.78[CoStar Group][CSGP]• Vol: 316,562-$2.074.07%$48.78[Martin Marietta Materials][MLM]• Vol: 164,052-$26.243.71%$681.87 (NASDAQ:GOOGL | GOOGL Price Prediction) has been the best of the Magnificent Seven for a reason. Whether we're talking…]## Prediction: Costco Has What it Takes to Surge and Split in 2026[Joey Frenette | Dec 30, 2025 at 11:32 AM EST What a forgettable year it's been for shareholders of Costco (NASDAQ:COST), which is actually attempting to stage a comeback after…]## ...

Core Insights - Albertsons Companies, Inc. (ACI) reported third-quarter fiscal 2025 results with sales below expectations but earnings exceeding estimates, showing year-over-year growth in both top and bottom lines [1][2]. Sales Performance - Net sales and other revenues reached $19,123.7 million, slightly below the Zacks Consensus Estimate of $19,160 million, marking a 1.9% year-over-year increase driven by a 2.4% rise in identical sales, an 18% increase in pharmacy sales, and a 21% jump in digital sales [5][10]. - The temporary government shutdown and delayed SNAP funding negatively impacted identical sales by 10-20 basis points [6]. Earnings and Margins - Adjusted quarterly earnings were 72 cents per share, beating the Zacks Consensus Estimate of 67 cents, with a 1.4% increase from 71 cents in the prior-year period [4][10]. - Gross profit remained flat at $5.25 billion, with a gross margin contraction of 50 basis points year-over-year to 27.4% [6][10]. Expenses and Cost Management - Selling and administrative expenses increased by 0.9% to $4.76 billion, with a decline of 20 basis points year-over-year as a percentage of net sales [8]. - Adjusted EBITDA declined 2.5% year-over-year to $1.04 million, with an adjusted EBITDA margin of 5.4%, down 30 basis points year-over-year [9]. Strategic Initiatives - The company is advancing its strategic priorities by enhancing customer value propositions, expanding digital capabilities, and embedding AI and data into core operations [3]. - Ongoing investments in technology modernization and store enhancements are part of the long-term transformation strategy, despite a cautious consumer environment [3]. Financial Position - As of the end of the quarter, cash and cash equivalents totaled $195.1 million, with long-term debt and finance-lease obligations at $8.42 billion and total stockholders' equity at $2.50 billion [11]. - The net debt to adjusted EBITDA ratio was 2.29X, indicating a strong balance sheet and capacity for growth funding [13]. Future Outlook - The company updated its fiscal 2025 expectations, projecting identical sales growth between 2.2% and 2.5%, adjusted EBITDA between $3.83 billion and $3.88 billion, and adjusted earnings per share between $2.08 and $2.16 [15][16]. - The anticipated impacts of the Inflation Reduction Act's Medicare Drug Price Negotiation Program are expected to reduce pharmacy sales, affecting fiscal year identical sales by 16-18 basis points [17].

Core Insights - Albertsons Companies, Inc. reported a year-over-year increase in net sales for the fourth quarter of fiscal 2024, surpassing the Zacks Consensus Estimate, while adjusted earnings per share declined but still beat expectations [1][3][14] - The company is focusing on its "Customers for Life" strategy, which aims to drive future growth and value creation through investments in core business areas, including digital platforms and media [2][13] Financial Performance - Adjusted earnings per share for the fourth quarter were 46 cents, exceeding the consensus estimate of 40 cents, but down 14.8% from 54 cents in the prior year [3] - Net sales reached $18,799.5 million, a 2.5% increase year-over-year, driven by a 2.3% rise in identical sales and an 18% increase in pharmacy sales [3] - Digital sales grew by 24%, attributed to strong first-party sales [3] Membership and Customer Engagement - Loyalty membership increased by 15% to 45.6 million in the fourth quarter compared to the same period in fiscal 2023 [4] Margins and Expenses - Gross profit was $5.1 billion, a slight increase of 0.1% year-over-year, but gross margin contracted by 60 basis points to 27.4% [5] - Selling and administrative expenses rose by 2.5% to $4.8 billion, maintaining a rate of 25.7% of net sales [7] - Adjusted EBITDA declined 6.6% year-over-year to $855.1 million, with an adjusted EBITDA margin of 4.5%, down 50 basis points [8] Financial Snapshot - As of February 22, 2025, cash and cash equivalents stood at $293.6 million, with long-term debt totaling $7.8 billion and total stockholders' equity at $3.4 billion [9] Capital Expenditures and Dividends - Capital expenditures for fiscal 2024 were $1.9 billion, reflecting store remodels and investments in digital platforms, with expectations for fiscal 2025 expenditures between $1.7 billion and $1.9 billion [10] - The company raised its quarterly dividend by 25% to 15 cents per share, with the next payment scheduled for May 9, 2025 [11] Future Outlook - For fiscal 2025, Albertsons anticipates identical sales growth of 1.5-2.5% and adjusted EBITDA between $3.8 billion and $3.9 billion [13] - Adjusted earnings per share are projected to be in the range of $2.03-$2.16, reflecting a decrease from $2.34 in fiscal 2024 [14]