ACI
Albertsons cuts fiscal 2026 sales and profit outlook, stock drops
Article Summary
HOLD- Albertsons Companies Inc. (NYSE: ALB) dropped more than 20% after cutting its fiscal 2026 sales and profit forecasts following a sharp drop in first-quarter earnings.
- Albertsons Companies now expects identical sales to fall between 0.5% and 1.5%, down from a prior target of flat to up 1%.
- Adjusted earnings per share guidance was also cut to $1.75 to 1.85, down from $2.22-2.32, and adjusted EBITDA guidance was lowered to between $3.55 billion and $ 3.625 billion from $385 billion-3.925 billion.
- Chief Executive Susan Morris identified Walmart and Amazon as the primary destinations drawing customers away from Albertson's, describing the shift as concentrated among shoppers gravitating toward retailers that compete aggressively on price.
- As part of restructuring, the company will collapse its current structure of 11 operating divisions down to four regional units, bringing merchandising functions under centralized control.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.5% | 25% | 20.0 ptsMinimal (3.5%) - Very weak |
| EPS Growth Next 5Y ? | 4.5% | 25% | 10.0 ptsVery Weak (4.5%) - Minimal expectations |
| Target Price Upside ? | 69.2% | 20% | 100.0 ptsMassive Upside (69.2%) - Target: $19.36 vs Current: $11.44 |
| Gross Margin % ? | 25.1% | 15% | 40.0 ptsModerate (25.1%) - Adequate margins |
| Drawdown from 52-Wk High ? | -45.3% | 15% | 100.0 ptsDeep Discount (-45.3%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About ACI
- Albertsons Companies, Inc., through its subsidiaries, operates in the food and drug retail industry in the United States.
- The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, vaccines, fuel, and other items and services.
- It also operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, ACME, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and in-store pharmacies and branded coffee shops, fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms.
- Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho.