Grocery retailer Albertsons (NYSE: ACI) will be reporting results this Wednesday before the bell. Here’s what to look for.
Albertsons beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $24.88 billion, up 2.5% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
Is Albertsons a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Albertsons’s revenue to grow 2% year on year to $18.88 billion, in line with the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Albertsons has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Albertsons’s peers in the non-discretionary retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Kroger posted flat year-on-year revenue, missing analysts’ expectations by 1%, and Dollar General reported revenues up 4.6%, in line with consensus estimates. Kroger traded down 5.3% following the results while Dollar General was up 20.6%.
Read our full analysis of Kroger’s results here and Dollar General’s results here.
Investors in the non-discretionary retail segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Albertsons is up 1.1% during the same time and is heading into earnings with an average analyst price target of $23.56 (compared to the current share price of $17.29).
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