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Albertsons (ACI) to Post Q1 Earnings: What Awaits the Stock?

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Albertsons Companies, Inc. ACI is likely to register top- and bottom-line decline when it reports first-quarter fiscal 2021 results on Jul 29, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $20.5 billion, which indicates a decline of 9.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter earnings currently stands at 68 cents per share, suggesting a slump of 49.6% from the year-ago reported figure. The consensus mark has moved up by 2 cents in the past 30 days. This leading food and drug products retailer delivered an earnings surprise of 20% in the last reported quarter.

Key Aspects to Note

Albertsons top-line is like to reflect the impact of demand moderation, as consumers have begun outdoor dining amid easing of pandemic restrictions and vaccine rollouts. Reduction in pantry loading and at-home consumption trends might have affected year-on-year revenue comparison. In the last earnings call, management indicated that the company is witnessing lower demand across certain categories such as soup, pasta and pasta sauce, when compared to pre-pandemic levels.

Lower fuel sales may have weighed on the to-be-reported quarter’s performance. In the last earnings call, management predicted fuel related headwinds worth $50 million for the first-quarter. Adverse impacts stemming from higher selling, general & administrative expenses cannot be ruled out. The company has been incurring higher selling and administrative expenses due to incremental COVID-19 expenses and other charges.

Nevertheless, gains from rising digital sales, loyalty program and efforts to boost assortments, especially in the fresh and Own Brands categories, are likely to have favored the first quarter performance.

Albertsons Companies, Inc. Price, Consensus and EPS Surprise

Albertsons Companies, Inc. Price, Consensus and EPS Surprise
Albertsons Companies, Inc. Price, Consensus and EPS Surprise

Albertsons Companies, Inc. price-consensus-eps-surprise-chart | Albertsons Companies, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Albertsons this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Albertsons has a Zacks Rank #3 and an Earnings ESP of +4.44%.

Other Stocks With Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:

Chewy Inc. CHWY currently has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco Wholesale Corporation COST currently has an Earnings ESP of +0.52% and a Zacks Rank #2.

Sprouts Farmers Market, Inc. SFM has an Earnings ESP of +2.95% and a Zacks Rank #3, at present.


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Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Chewy Inc. (CHWY) : Free Stock Analysis Report

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