Why Albertsons plunged today | Motelian fool

Stock of grocery store chain Albertsons (ACI -7.44%)) 1 pm, et. Albertsons reported today’s income today, and the result of the last quarter was solid, but the outlook for the management’s interests was much lower than the analyst’s expectations.

Albertsons shares have actually increased to date, despite the overall market decrease in tariffs and economic uncertainty. So you probably needed a fullback. In addition, Albertsons’ CEO may retire and may have played an important role in conservative guidelines.

Albertsons revenue earned income

In the fourth quarter, Albertsons’ sales rose 2.5% to $ 18.8 billion, and the same store sales increased 2.3%, consistent with expectations. The adjusted (accounting principles allowed by non -GAAP or non -gayers) fell from 15%to $ 0.46. But in reality, it was ahead of the analyst’s expectations.

In the fourth quarter, the EPS was ahead of expectations, but the management of the 2025 EPS guidelines was much lower than the $ 2.28 per share of $ 2.03 ~ $ 2.16 per share. More problems were that this prospect would indicate the decrease in income, which was adjusted for three consecutive years of Albertsons.

Albertsons’ pharmacy offering has fueled profit growth, and the company is investing in a 24% growth shipping and digital program. But pharmacy revenue is low, and shipping growth accompanies additional investments in some of the company. These two elements press the total margin of Albertsons, while the grocery store chain has maintained a lid on price hikes to prevent competition.

But is the management intentionally conservative?

Albertsons’ CEO Vivek Sankaran is currently retiring when Coo Susan Morris is successful on May 1st. Often, if management changes are expected, the company will conservatively guide the new executive to “win” the expectation at the beginning of its term. Given the disappointing existing import trajectory, it is difficult to know whether management is actually conservative, but it is possible.

Overall, Albertsons can still be eaten for defense in the recession because people still have to eat and buy more grocery instead of going to a restaurant. However, Albertsons is still in a fierce point after the proposed acquisition. Croan It was rejected last year. Therefore, those who are looking for powerful import growth or rising will probably see elsewhere.