Albertsons Companies (NYSE:ACI) Issues Quarterly Earnings Results

Albertsons Companies (NYSE:ACI) posted its quarterly earnings data on Tuesday. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.03, FiscalAI reports. Albertsons Companies had a negative net margin of 0.06% and a positive return on equity of 52.17%. The firm had revenue of $18.89 billion during the quarter, compared to analysts’ expectations of $18.87 billion. During the same quarter last year, the company posted $0.30 EPS. The company’s quarterly revenue was down .1% compared to the same quarter last year.

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

• Second-quarter performance remained weak: identical sales declined 0.8%, adjusted EBITDA was $784 million, and adjusted EPS was $0.36. Management said traffic, units, and core retail performance remain below expectations.
• Albertsons is launching an accelerated, comprehensive turnaround review focused on simplifying the organization, improving store execution, reducing shrink and third-party spending, investing selectively in pricing, and evaluating underperforming assets. A detailed plan and refreshed multiyear outlook are expected with fourth-quarter results, followed by an investor day in spring 2027.
• The company declined to update its financial outlook, citing uncertainty over the timing and mix of planned cost reductions, investments, and possible portfolio actions. Management said the core business’s second-quarter exit rate has not materially changed and that lower-income customers remain under pressure.
• Despite the sales pressure, e-commerce grew 11%, pharmacy prescription volume continued to rise, and the company generated $1.2 billion of operating cash flow in the first half, with net leverage at 2.4 times. Management also highlighted meaningful potential for additional savings through centralized buying, goods-not-for-resale procurement, SG&A reductions, and better inventory management.
• Albertsons repurchased approximately $400 million of stock in the first half and has $1.7 billion remaining under its $2 billion authorization, while continuing its quarterly $0.17-per-share dividend. Executives said capital allocation will be reassessed holistically but indicated they expect to remain opportunistic with buybacks.

Albertsons Companies Price Performance

Shares of ACI stock opened at $13.05 on Thursday. The stock has a 50-day moving average price of $12.20 and a 200 day moving average price of $14.20. The company has a quick ratio of 0.21, a current ratio of 0.82 and a debt-to-equity ratio of 5.89. The firm has a market cap of $6.34 billion, a price-to-earnings ratio of -118.68, a PEG ratio of 2.17 and a beta of 0.40. Albertsons Companies has a 12 month low of $10.86 and a 12 month high of $20.00.

Albertsons Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 6th. Investors of record on Friday, October 23rd will be given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 5.2%. The ex-dividend date is Friday, October 23rd. Albertsons Companies’s dividend payout ratio (DPR) is presently -618.18%.

Key Albertsons Companies News

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

• Positive Sentiment: Albertsons beat second-quarter fiscal 2026 adjusted earnings expectations, reporting $0.36 per share versus the $0.33 consensus, while revenue of $18.89 billion was slightly above forecasts. Management also outlined an expanded cost-reduction program targeting approximately $2 billion in savings and plans to hold an investor day in spring 2027. Albertsons Second-Quarter Fiscal 2026 Results
• Positive Sentiment: Royal Bank of Canada raised its price target from $13 to $16 and upgraded the stock to “outperform,” signaling confidence that the ACI Edge turnaround strategy and business review could unlock value.
• Positive Sentiment: The company declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annually and an approximately 5.2% yield, which may support income-oriented investors.
• Positive Sentiment: Albertsons announced plans for a new store in Valley Center, California, expected to open in spring 2028. The location should add long-term sales, pharmacy revenue and local jobs, though the financial effect is distant. Albertsons Valley Center Store Announcement
• Neutral Sentiment: New executive chair Meg Whitman is taking a more active role as Albertsons reviews its strategy, cost structure and business portfolio. The review could lead to asset sales or other strategic changes, but its outcome remains uncertain.
• Negative Sentiment: Albertsons withdrew its fiscal 2026 outlook while conducting the review, reducing visibility for investors. The company cited the need to move faster on its turnaround as it addresses mixed margins and weaker consumer spending.
• Negative Sentiment: Despite the adjusted earnings beat, reported profit declined sharply year over year, revenue was essentially flat, and the company posted a negative net margin. Bank of America reaffirmed its “underperform” rating and cut its price target from $16 to $12, warning of near-term earnings pressure.

Insiders Place Their Bets

In other Albertsons Companies news, CFO Sharon Mccollam bought 9,000 shares of the business’s stock in a transaction on Friday, July 31st. The shares were bought at an average cost of $11.48 per share, for a total transaction of $103,320.00. Following the transaction, the chief financial officer owned 567,051 shares in the company, valued at approximately $6,509,745.48. This trade represents a 1.61% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Susan Morris bought 39,409 shares of the business’s stock in a transaction on Tuesday, July 28th. The shares were acquired at an average price of $11.42 per share, for a total transaction of $450,050.78. Following the completion of the transaction, the chief executive officer owned 1,092,956 shares in the company, valued at approximately $12,481,557.52. This trade represents a 3.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders bought 218,909 shares of company stock valued at $2,515,826. 1.18% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ACI. BMO Capital Markets lowered shares of Albertsons Companies from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $23.00 to $12.00 in a research report on Friday, July 24th. Bank of America reissued an “underperform” rating and issued a $12.00 price target (down from $16.00) on shares of Albertsons Companies in a report on Wednesday. Zacks Research raised shares of Albertsons Companies from a “strong sell” rating to a “hold” rating in a report on Monday, September 21st. Citigroup restated a “neutral” rating and issued a $11.00 price objective (down from $17.00) on shares of Albertsons Companies in a research report on Monday, July 27th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Albertsons Companies in a report on Wednesday. Five equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $14.85.

About Albertsons Companies

Albertsons Companies, Inc is a U.S. food and drug retailer headquartered in Boise, Idaho. The company operates supermarkets, pharmacies and related retail businesses under banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, ACME, Tom Thumb, Randalls, United Supermarkets, Pavilions, Carrs and Haggen.

Its stores offer groceries, fresh produce, meat and seafood, bakery and deli items, household products, health and beauty products, and pharmacy services. Albertsons also provides private-label products, fuel at select locations, grocery delivery and pickup, digital shopping tools, and customer loyalty programs.

The company’s history traces to 1939, when Joe Albertson opened the first Albertsons store in Boise.