Back to top

Image: Bigstock

Albertsons (ACI) Lined Up for Q4 Earnings: Key Factors to Note

Read MoreHide Full Article

Albertsons Companies, Inc. (ACI - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results on Apr 12, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $16,799 million, indicating growth of 6.5% from the prior-year reported figure.

The bottom line of this food and drug retailer in the United States is expected to increase year over year. The Zacks Consensus Estimate for earnings per share for the quarter under discussion has risen by a couple of cents in the past seven days to 65 cents. The figure suggests an improvement of 8.3% from 60 cents reported in the year-ago period.

For fiscal 2021, the consensus mark for revenues is pegged at $71,303 million, which indicates growth of 2.3% from last year. Again, the consensus mark for full-year earnings per share stands at $2.97, suggesting a decline of 8.3% from $3.24 reported in fiscal 2020.

Albertsons Companies has a trailing four-quarter earnings surprise of 31.8%, on average. In the last reported quarter, this Boise, ID-based company surpassed the Zacks Consensus Estimate by 33.9%.

Key Factors to Note

Albertsons Companies' focus on providing efficient in-store services, enhancing digital and omni-channel capabilities, and increasing productivity has been contributing to its top-line performance. The company has been striving to enhance digital payment facilities alongside expanding the availability of online assortments.

Efforts to bolster assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company's right assortment in each local market, loyalty program, and ease of checkout through frictionless and contactless payments have been aiding in attracting customers. As part of its digital endeavors, the company has been expanding Drive Up & Go locations and sharpening home delivery capabilities.

Clearly, the aforementioned factors instill optimism regarding the outcome of the results. However, margins still remain an area to watch. The impact of costs associated with digital fulfillment, supply chain and COVID-19 related expenses cannot be ruled out. Product cost inflation, tight labor market and supply chain bottlenecks are some of the challenges Albertsons Companies is currently facing.

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 Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. You can see the complete list of today's Zacks #1 Rank stocks here.

Albertsons Companies has a Zacks Rank #2 and an Earnings ESP of +3.98%.

3 More Stocks With Favorable Combination

Here are three 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:

Costco (COST - Free Report) currently has an Earnings ESP of +1.56% and a Zacks Rank #2. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.02 suggests an improvement from $2.75 reported in the year-ago quarter.

Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $50.57 billion, which indicates an improvement of 11.7% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.

Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +2.94% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 51 cents suggests growth from 19 cents reported in the year-ago quarter.

Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.08 billion, indicating an increase of 81.6% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 1.5%, on average.

Campbell Soup (CPB - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 61 cents suggests an increase of 7% from the year-ago reported number.

Campbell Soup's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.03 billion, which suggests an increase of 2.4% from the prior-year quarter. CPB has a trailing four-quarter earnings surprise of 3.7%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in