Albertsons May Beat Fiscal Q1 Expectations But Q2 Results Could Weaken, RBC Says

MT Newswires Live07-16 23:49

Albertsons (ACI) could beat fiscal Q1 expectations despite weak sales, but tougher competition may slow Q2 results, while full-year guidance is likely to remain unchanged, RBC Capital Markets said in a note Thursday.

RBC expects fiscal Q1 identical sales to fall 0.5% and adjusted earnings before interest, taxes, depreciation, and amortization to remain nearly flat at $1.11 billion, above the $1.08 billion consensus estimate The investment firm lowered its fiscal Q2 identical-sales forecast to about flat from 0.5% growth after store and transaction data weakened near the end of fiscal Q1.

Albertsons is expected to keep its fiscal 2026 guidance, although management may sound more cautious about the pace of customer traffic and sales recovery, according to the note.

RBC expects grocery sales to remain under pressure from stronger competition, while pharmacy growth, cost savings and improving digital profits could help protect gross margins.

RBC kept its outperform rating and $20 price target, adding that it now expects identical sales growth of 0.3% in fiscal 2026 and 1.5% in fiscal 2027, with adjusted EBITDA of $3.91 billion and $4.13 billion, respectively.

Price: 14.89, Change: +0.32, Percent Change: +2.23

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