Albertsons beats quarterly profit estimates but withdraws full-year outlook
+6 new sources since this summary was written
Albertsons reported fiscal second-quarter adjusted earnings of $0.36 per share for the period ended Sept. 6, while revenue fell 0.1% year over year to $18.895 billion. Identical sales declined 0.8%, although digital sales increased 11%. The company withdrew its full-year outlook and launched a comprehensive business review focused on pricing, costs, operations, assets and capital allocation.
Why it matters
Withdrawing the outlook reduces near-term earnings visibility while management reassesses the business and prepares an updated financial framework and turnaround plan. Wells Fargo's note said the company faces significant challenges and poor near-term earnings visibility.
Key facts
- 1Albertsons' GAAP net income fell to $51.5 million from $168.5 million a year earlier. finance.biggo.com
- 2Adjusted EBITDA was $784 million in the quarter. finance.yahoo.com
- 3Management said the cost-savings program had been increased to $2 billion over the next three years. finance.yahoo.com
- 4Wells Fargo raised its price target to $12.00 from $11.00 while maintaining an Equal Weight rating. investing.com
Open questions
- The materials do not provide the updated financial framework or turnaround plan that management expects to present later.
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.