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Albertsons Adjusted Profit Beats Estimate Amid Pandemic

Grocery chain Albertsons's second-quarter GAAP profit slipped but the adjusted number beat Wall Street's expectations.
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Albertsons  (ACI)  shares rose Tuesday after the big grocery chain reported stronger-than-expected fiscal-second-quarter earnings during the coronavirus pandemic.

The Boise, Idaho, company's shares recently traded at $15.20, up 5.6%. They'd eased 7% from its June initial public offering through Monday. The stock touched a high of $16.50 on June 26.

In the quarter ended Sept. 12, profit totaled $284.5 million, or 49 cents a share, compared with $294.8 million, or 51 cents, in the year-earlier quarter. The latest adjusted earnings were 60 cents a share, more than double the analyst consensus of 27 cents derived from a FactSet survey.

Albertsons posted revenue of $15.76 billion, up 11% from $14.18 billion in the year-earlier period. The latest number topped the FactSet analyst consensus of $15.44 billion.

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Online sales more than tripled and same-store sales surged 13.8%, beating the analyst consensus of 12%

For the fiscal year Albertsons projected adjusted earnings per share of $2.75 to $2.85 as comparable sales climb 15.5%. Those numbers top analysts’ consensus of $2.18 and 12.9% respectively.

For the fiscal first quarter ended June 20, its first after its IPO, Albertsons in July reported weaker-than-expected revenue but stronger-than-expected adjusted profit.

Net income increased to $586.2 million, or $1 a share in the first quarter, from $49 million, or 8 cents, in the year-earlier quarter. Revenue rose 21% to $22.75 billion. 

Store closures and lower fuel sales resulting from the coronavirus pandemic limited the revenue gain for Albertsons. But increased grocery shopping overall during the coronavirus epidemic helped boost results.