Albertsons beats Q3 earnings estimates despite revenue miss

Investing.com -- Albertsons Companies, Inc. (NYSE: ACI) reported third-quarter fiscal 2025 adjusted earnings that exceeded analyst expectations, while revenue came in slightly below estimates as the grocery chain continues to invest in digital growth and technology.

The supermarket operator posted adjusted earnings of $0.72 per share for the quarter ended November 29, beating the analyst consensus of $0.68. Revenue reached $19.12 billion, up 1.9% from the same period last year but falling short of the $19.18 billion analysts had expected. Identical store sales increased 2.4% YoY, driven primarily by strong pharmacy sales growth.

Shares of Albertsons dipped 0.5% following the earnings announcement.

"In the third quarter, we delivered solid results and continued to advance our strategic priorities," said Susan Morris, Chief Executive Officer. "Our investments in technology and AI are fundamentally reshaping how we operate and serve our customers; driving smarter decisions, greater efficiency, and more personalized experiences."

Digital sales surged 21% during the quarter, while loyalty membership grew 12% to 49.8 million members. The company noted that the temporary government shutdown and related delayed SNAP funding negatively impacted identical sales by approximately 10 to 20 basis points during the quarter.

Gross margin rate decreased to 27.4% from 27.9% in the prior year period, primarily due to increased delivery and handling costs related to digital sales growth and the expansion of lower-margin pharmacy sales.

For fiscal 2025, Albertsons narrowed its identical sales growth forecast to between 2.2% and 2.5%, down from its previous guidance of 2.2% to 2.75%, partly due to the impact of Medicare’s Drug Price Negotiation Program. The company expects adjusted earnings per share of $2.08 to $2.16, compared to the analyst consensus of $2.14.

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