Albertsons (ACI) Tops Q3 EPS by 35c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

Albertsons (NYSE: ACI) reported Q3 EPS of $0.60, $0.35 better than the analyst estimate of $0.25. Revenue for the quarter came in at $15.76 billion versus the consensus estimate of $15.5 billion.

Second Quarter of Fiscal 2020 Highlights

• Identical sales growth of 13.8%
• Digital sales growth of 243%
• Diluted net income per share of $0.49; Adjusted net income per share of $0.60
• Net income of $284.5 million
• Adjusted EBITDA of $948.4 million, an increase of 67% compared to the second quarter last year
• Debt refinancing and paydown transactions to deliver approximately $52 million in annualized interest savings

"We continue to successfully execute against our strategic priorities, which translated into outstanding second quarter results. We have a value proposition that is resonating with customers and driving market share gains across all of our markets," said Vivek Sankaran, President and CEO. "We are in the early stages of a transformation to become a modern, growing food retailer providing a wide assortment of high quality fresh and essential goods to customers, and we remain well-positioned to generate differentiated performance and deliver an excellent shopping experience."

GUIDANCE:

Albertsons sees FY2020 EPS of $2.75-$2.85, versus the consensus of $2.20.

Since the beginning of fiscal 2020, the Company has experienced significant increases in product demand and overall basket size in our stores and in our eCommerce business due in part to COVID-19 related demand. As a result, the Company is providing an updated fiscal 2020 outlook, as follows:

• Identical sales in fiscal 2020 of at least 15.5%
• Adjusted EPS in the range of $2.75 per share to $2.85 per share
• Adjusted EBITDA in the range of $4.15 billion to $4.25 billion
• Effective tax rate to be approximately 25% excluding discrete items
• Capital expenditures to be approximately $1.9 billion

For earnings history and earnings-related data on Albertsons (ACI) click here.

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