Albertsons Companies (NYSE:ACI) Issues Earnings Results

Albertsons Companies (NYSE:ACI) announced its quarterly earnings results on Wednesday. The company reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.05, FiscalAI reports. Albertsons Companies had a return on equity of 38.00% and a net margin of 1.06%.The firm had revenue of $19.12 billion for the quarter, compared to analysts’ expectations of $19.18 billion. During the same period in the prior year, the business posted $0.71 earnings per share. The company’s revenue was up 1.9% on a year-over-year basis. Albertsons Companies updated its FY 2025 guidance to 2.080-2.16 EPS.

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

• Albertsons reported Q3 results with identical sales up 2.4%, digital sales +21%, adjusted EBITDA of $1.039B and adjusted EPS of $0.72, while loyalty membership grew to about 49.8 million, signaling resilient top-line and digital momentum.
• Management is executing a company-wide AI and technology transformation (partners include Google, OpenAI, Databricks), highlighting Ask AI users’ ~10% larger baskets and plans to scale AI across merchandising, labor, and supply chain to drive structural cost advantages and personalized customer experiences.
• Pharmacy and health performed strongly (sales +18%, driven by immunizations and GLP-1s), but the Inflation Reduction Act’s Medicare drug price negotiations will create an estimated ~65–70bp Q4 headwind (~16–18bp FY) to identical sales — a top-line drag that management says is near-neutral to EBITDA.
• The company reiterated a $1.5B productivity target over three years, showed SG&A rate improvement and a net debt/Adjusted EBITDA of 2.29x, deployed $462M in capex, and is completing a $750M ASR while preserving capacity for dividends and opportunistic buybacks.

Albertsons Companies Price Performance

Shares of Albertsons Companies stock opened at $16.64 on Friday. The firm has a market capitalization of $9.14 billion, a PE ratio of 10.73, a price-to-earnings-growth ratio of 2.61 and a beta of 0.48. The company has a current ratio of 0.91, a quick ratio of 0.20 and a debt-to-equity ratio of 3.36. Albertsons Companies has a 12 month low of $15.80 and a 12 month high of $23.20. The business’s 50-day moving average price is $17.53 and its 200-day moving average price is $18.78.

Albertsons Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 6th. Stockholders of record on Friday, January 23rd will be given a dividend of $0.15 per share. The ex-dividend date is Friday, January 23rd. This represents a $0.60 annualized dividend and a dividend yield of 3.6%. Albertsons Companies’s dividend payout ratio is 38.71%.

Analyst Ratings Changes

Several research analysts have commented on the stock. Wall Street Zen downgraded shares of Albertsons Companies from a “buy” rating to a “hold” rating in a report on Sunday, November 2nd. UBS Group dropped their price objective on Albertsons Companies from $25.00 to $23.00 and set a “buy” rating for the company in a research note on Thursday. JPMorgan Chase & Co. reduced their target price on Albertsons Companies from $24.00 to $23.00 and set an “overweight” rating for the company in a research report on Thursday. Barclays lowered their price target on Albertsons Companies from $19.00 to $17.00 and set an “underweight” rating on the stock in a report on Thursday. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Albertsons Companies in a report on Monday, December 29th. Eleven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Albertsons Companies has an average rating of “Moderate Buy” and an average target price of $22.85.

Insider Activity at Albertsons Companies

In other Albertsons Companies news, EVP Michael T. Theilmann sold 100,000 shares of the stock in a transaction that occurred on Thursday, October 16th. The shares were sold at an average price of $19.35, for a total transaction of $1,935,000.00. Following the transaction, the executive vice president directly owned 338,429 shares in the company, valued at $6,548,601.15. This trade represents a 22.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Anuj Dhanda sold 230,000 shares of Albertsons Companies stock in a transaction that occurred on Thursday, October 16th. The stock was sold at an average price of $19.25, for a total transaction of $4,427,500.00. Following the transaction, the insider directly owned 300,577 shares in the company, valued at $5,786,107.25. This trade represents a 43.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.35% of the stock is owned by corporate insiders.

Institutional Trading of Albertsons Companies

Several hedge funds have recently added to or reduced their stakes in the business. Bank of Nova Scotia boosted its position in Albertsons Companies by 5.4% during the second quarter. Bank of Nova Scotia now owns 14,041 shares of the company’s stock valued at $302,000 after buying an additional 723 shares during the period. Orion Porfolio Solutions LLC lifted its stake in shares of Albertsons Companies by 4.9% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 22,357 shares of the company’s stock valued at $481,000 after acquiring an additional 1,047 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in Albertsons Companies by 0.7% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 205,780 shares of the company’s stock valued at $3,603,000 after acquiring an additional 1,528 shares during the period. Lido Advisors LLC grew its position in Albertsons Companies by 4.0% during the 3rd quarter. Lido Advisors LLC now owns 52,844 shares of the company’s stock worth $925,000 after acquiring an additional 2,032 shares during the last quarter. Finally, Rafferty Asset Management LLC increased its stake in Albertsons Companies by 10.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 23,929 shares of the company’s stock worth $515,000 after purchasing an additional 2,179 shares during the period. 71.35% of the stock is owned by institutional investors.

More Albertsons Companies News

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

• Positive Sentiment: Q3 results beat on EPS and company raised FY‑2025 EPS guidance to $2.08–2.16 (above consensus), supporting near‑term earnings visibility. Q3 press release
• Positive Sentiment: Board declared a $0.15 quarterly dividend (annualized ~3.5%+ yield), reinforcing income appeal for yield‑focused investors. Dividend announcement
• Positive Sentiment: Management highlighted digital/AI traction — an AI shopping assistant lifted basket size ~10% — and retail‑media expansion, both near‑term margin and longer‑term growth levers. AI basket lift article
• Neutral Sentiment: MarketBeat and other value‑oriented writeups argue ACI is a deep‑value/high‑yield opportunity (valuation multi‑year discount to peers, institutional accumulation noted) — a bullish narrative if execution continues. MarketBeat deep‑value piece
• Neutral Sentiment: Multiple brokers trimmed price targets but largely kept positive stances (JPMorgan 24→23 overweight; UBS 25→23 buy; BMO 25→23 outperform; Telsey 24→22 outperform; Wells Fargo 23→21 overweight) — reflects tempered expectations but still material upside vs. current price. Broker notes Benzinga coverage
• Negative Sentiment: Management narrowed full‑year outlook and flagged headwinds from lower Medicare drug pricing and a SNAP benefits drag — these pressures explain cautious guidance language and compress near‑term top‑line/profit expectations. Forecast narrow / Medicare impact
• Negative Sentiment: Analyst reaction included selling pressure after the release; Zacks and other coverage point to margin deterioration and pricing investments that drove an intraday selloff despite the EPS beat. Zacks selloff coverage
• Negative Sentiment: Barclays moved to an underweight with a much lower PT (to $17), signaling at least one firm sees downside risk if margins and SNAP/Medicare pressures persist. Barclays note

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.