Albertsons beats fourth quarter profit expectations, revenue falls short
Investing.com -- Albertsons Companies Inc. (NYSE: ACI) reported its fourth quarter results on Tuesday, with earnings topping expectations but revenue below the consensus estimate.
Adjusted earnings per share came in at $0.48, surpassing the analyst estimate of $0.43. Revenue of $20.3 billion fell short of the $20.49 billion consensus. The grocer's revenue increased from $18.8 billion in the prior-year period, which included one fewer week than the current quarter.
The company's identical sales rose 0.7% during the quarter, impacted by pharmacy pricing headwinds from the Inflation Reduction Act and industry mix shifts. Digital sales grew 16%, while loyalty membership increased 12% to 51.2 million members. For fiscal 2026, Albertsons issued adjusted EPS guidance of $2.22 to $2.32, with a midpoint of $2.27 that sits slightly below the analyst consensus of $2.29.
Shares rose 0.5% premarket following the results.
"Fiscal 2025 was a year of disciplined execution and resilience, as we closed the year with a solid fourth quarter that delivered strong Adjusted EBITDA despite meaningful top-line pharmacy-related headwinds," said Susan Morris, CEO of Albertsons Companies.
The company reported a net loss of $480.8 million, or -$0.94 per share, which included a $599.8 million after-tax charge related to an opioid settlement framework. Excluding this charge, adjusted net income reached $251.7 million. Adjusted EBITDA totaled $903.4 million, up from $855.1 million in the prior-year quarter, benefiting from an estimated $68 million contribution from the extra week.
Albertsons announced a 13% increase in its quarterly dividend to $0.17 per share and expanded its share repurchase authorization to $2.0 billion. The company expects fiscal 2026 identical sales growth of 0.0% to 1.0%, reflecting an estimated 150 basis point headwind from Medicare drug price negotiations, and adjusted EBITDA of $3.850 billion to $3.925 billion.
