Albertsons Shares Fall on Revenue Miss

Albertsons' adjusted EPS totaled $1.35 per share for the latest quarter, topping the FactSet analyst consensus of $1.32.

Albertsons  (ACI) - Get Report shares fell Monday, after the country’s second-largest grocery chain posted weaker-than-expected revenue in its first quarterly report since going public in June.

In the first quarter of fiscal 2020, which ended June 20, revenue rose 21% to $22.75 billion from $18.74 billion a year ago. But the latest figure trailed analysts’ expectations of $22.79 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.

Albertsons registered net income of $586.2 million, or $1 per share in the latest quarter, up from $49.0 million, or 8 cents per share, in the year-ago quarter. Adjusted EPS totaled $1.35 per share for the latest quarter, topping the FactSet analyst consensus of $1.32.

Albertsons shares were falling 4.5% to $15.38 on Monday, little changed from the IPO.

Same-store sales climbed a hefty 26.5% in the latest quarter, and digital sales skyrocketed 276%. The digital sales surge was sparked by consumers' unwillingness to walk the aisles during the pandemic.

As for Albertsons’ IPO, it was priced at $16 a share, lower than expected, and fewer shares were sold than anticipated.

Albertsons sold 50 million shares, below expectations of 65.8 million shares. It raised $800 million in the offering. The IPO valued Albertsons at about $9.3 billion.

The company didn’t receive any proceeds from the offering, as the share sale came from existing shareholders. Cerberus Capital Management, Albertsons’s private-equity backer, owns 31.9% of Albertsons following the offering.