Albertsons Companies (NYSE:ACI) Announces Earnings Results, Misses Expectations By $0.13 EPS

Key Points

• Albertsons missed earnings expectations, reporting adjusted EPS of $0.42 versus the $0.55 consensus, while revenue of $24.94 billion was only slightly above estimates. The stock fell sharply after the release.
• The company cut its fiscal 2026 outlook, now guiding for EPS of $1.75 to $1.85 and lower EBITDA, citing softer sales trends, pressure on lower-income consumers, and higher investments in customer value.
• Management unveiled the ACI Edge restructuring plan to streamline operations and expects about $200 million in annual benefits, with digital sales up 13% and e-commerce remaining profitable in the quarter.

Albertsons Companies (NYSE:ACI - Get Free Report) issued its earnings results on Thursday. The company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.13), Briefing.com reports. Albertsons Companies had a return on equity of 42.75% and a net margin of 0.26%.The company had revenue of $24.94 billion for the quarter, compared to analysts' expectations of $24.88 billion. During the same quarter in the previous year, the firm posted $0.55 earnings per share. Albertsons Companies's revenue for the quarter was up .2% on a year-over-year basis. Albertsons Companies updated its FY 2026 guidance to 1.750-1.850 EPS.

Here are the key takeaways from Albertsons Companies' conference call:

• Albertsons reported identical sales down 0.8%, with adjusted EBITDA of $1.013 billion and adjusted EPS of $0.42, and management said results fell short of expectations.
• The company is launching the ACI Edge operating model, cutting from 11 divisions to four regions and centralizing Center Store merchandising to improve speed, accountability, and execution.
• Albertsons expects the ACI Edge and related productivity actions to generate about $200 million in annual incremental benefits, with most savings realized in fiscal 2027, helping fund reinvestment in value and personalization.
• Digital sales grew 13% and penetration reached nearly 10.5%, while management said e-commerce was profitable in the quarter, supported by better fulfillment productivity and stronger customer engagement.
• The company lowered its fiscal 2026 outlook, now expecting adjusted EBITDA of $3.55 billion-$3.625 billion and EPS of $1.75-$1.85, citing softer unit trends, lower-income consumer pressure, and higher customer-value investments.

Albertsons Companies Stock Down 19.9%

NYSE:ACI traded down $2.91 during midday trading on Thursday, reaching $11.69. 4,933,392 shares of the stock traded hands, compared to its average volume of 7,228,108. The company has a debt-to-equity ratio of 4.58, a quick ratio of 0.20 and a current ratio of 0.86. Albertsons Companies has a 12-month low of $11.68 and a 12-month high of $20.81. The stock has a market capitalization of $5.73 billion, a PE ratio of 36.50, a price-to-earnings-growth ratio of 1.68 and a beta of 0.42. The business has a 50-day moving average of $15.04 and a two-hundred day moving average of $16.43.

Albertsons Companies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, July 24th. This represents a $0.68 dividend on an annualized basis and a yield of 5.8%. Albertsons Companies's payout ratio is 212.50%.

Hedge Funds Weigh In On Albertsons Companies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ACI. Atlas Capital Advisors Inc. acquired a new position in Albertsons Companies in the fourth quarter valued at $84,000. Parallel Advisors LLC lifted its holdings in Albertsons Companies by 44.2% in the fourth quarter. Parallel Advisors LLC now owns 5,382 shares of the company's stock worth $92,000 after purchasing an additional 1,650 shares during the period. Aster Capital Management DIFC Ltd purchased a new stake in shares of Albertsons Companies in the fourth quarter valued at $93,000. Northwestern Mutual Wealth Management Co. boosted its position in Albertsons Companies by 11.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 7,326 shares of the company's stock worth $126,000 after purchasing an additional 774 shares during the period. Finally, Smartleaf Asset Management LLC increased its stake in Albertsons Companies by 1,728.3% in the second quarter. Smartleaf Asset Management LLC now owns 6,582 shares of the company's stock valued at $139,000 after acquiring an additional 6,222 shares during the period. Hedge funds and other institutional investors own 71.35% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ACI. Wells Fargo & Company reduced their price objective on shares of Albertsons Companies from $21.00 to $18.00 and set an "overweight" rating for the company in a report on Monday, June 29th. Citigroup cut their target price on shares of Albertsons Companies from $22.00 to $17.00 and set a "buy" rating for the company in a research note on Monday, June 29th. UBS Group dropped their price target on Albertsons Companies from $23.00 to $20.00 and set a "buy" rating on the stock in a research report on Wednesday, April 15th. JPMorgan Chase & Co. decreased their price objective on shares of Albertsons Companies from $22.00 to $20.00 and set an "overweight" rating on the stock in a report on Tuesday, June 30th. Finally, Weiss Ratings downgraded Albertsons Companies from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 29th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $20.25.

Albertsons Companies News Roundup

Here are the key news stories impacting Albertsons Companies this week:

• Negative Sentiment: Albertsons reported first-quarter fiscal 2026 EPS of $0.42, missing analyst expectations of $0.55 and down from $0.55 a year ago, signaling weaker-than-expected earnings performance. View Press Release
• Negative Sentiment: The company cut its fiscal 2026 sales outlook, saying grocery shoppers are becoming more cautious and are tightening budgets, which raises concern about near-term revenue growth. Albertsons Cuts FY Sales View as Grocery Shoppers Grow Cautious
• Negative Sentiment: Albertsons also lowered FY 2026 EPS guidance to $1.75-$1.85, below the $2.14 consensus estimate, which suggests analysts and investors may need to reset expectations lower.
• Neutral Sentiment: The company announced a new regional operating model and an updated Merch United merchandising approach, which could support longer-term efficiency but does not appear to offset the weaker earnings and guidance in the near term. Albertsons® Companies Advances the ACI Edge with New Regional Operating Model and Merch United
• Neutral Sentiment: President and CFO Sharon McCollam plans to retire later this year, creating an executive transition that investors may watch for signs of continuity in financial strategy. Albertsons® Companies Announces Retirement of President and Chief Financial Officer Sharon McCollam

About Albertsons Companies

Albertsons Companies, Inc NYSE: ACI is one of the largest food and drug retailers in the United States, operating a diversified portfolio of grocery store banners. Founded in 1939 by Joe Albertson in Boise, Idaho, the company has grown through both organic expansion and strategic acquisitions. Its core business activities encompass the sale of fresh produce, meat, bakery items, deli offerings, pharmacy services, and general merchandise. The company's retail operations are complemented by an in-house private-label program, featuring brands such as O Organics, Open Nature, and Lucerne, which cater to a range of customer preferences and price points.

Throughout its history, Albertsons Companies has pursued growth via mergers and partnerships.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.