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Albertsons (ACI) Lined Up for Q2 Earnings: What's in Store?
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Albertsons Companies, Inc. (ACI - Free Report) is likely to register a marginal increase in the top line when it reports second-quarter fiscal 2023 results on Oct 17 before market open. The Zacks Consensus Estimate for revenues is pegged at $18,203 million, indicating growth of 1.6% from the prior-year reported figure.
The bottom line of this food and drug retailer in the United States is expected to decline year over year. The Zacks Consensus Estimate for earnings per share for the quarter under discussion has been stable at 57 cents over the past 30 days. The figure suggests a decrease from the earnings of 72 cents reported in the year-ago period.
Albertsons Companies has a trailing four-quarter earnings surprise of 17.9%, on average. In the last reported quarter, this Boise, Idaho-based company surpassed the Zacks Consensus Estimate by 14.8%.
Key Factors to Note
Albertsons Companies, with its strategic focus on enhancing in-store services, digital capabilities and productivity, is poised for a decent second quarter. The company's expansion of digital payment facilities and online assortments, coupled with efforts to enhance fresh and Own Brands categories, has significantly elevated the customer experience. The robust Drive Up & Go curbside pickup service and efficient home delivery capabilities further bolster its digital initiatives.
For the second quarter, we anticipate identical sales, excluding fuel, to rise 2.1%, reflecting the company's successful strategies. Sales from the fresh category are anticipated to increase 3.6% to $6,156 million, showcasing the effectiveness of Albertsons Companies' assortment enhancements and customer-focused approach.
Despite these positive trends, there are challenges to navigate. Margins are a key area of concern due to costs associated with digital fulfillment and increased employee expenses. Additionally, in its latest earnings release, the company stated that the decrease in COVID-19 vaccinations and at-home test kit revenues is projected to cause an approximate $130 million headwind to adjusted EBITDA for the remaining three quarters of fiscal 2023. As a result, we anticipate a 60-basis point contraction in the adjusted EBITDA margin, settling at 5.3% year over year for the second quarter.
Albertsons Companies, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Albertsons Companies this time. 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. However, that’s not the case here.
Albertsons Companies has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.92% and a Zacks Rank of 2. The company is likely to register a decrease in the bottom line when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.00 suggests a decline of 6.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.49 billion, which suggests an increase of 6.3% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 12.9%, on average.
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 96 cents suggests a drop of 3% from the year-ago quarter.
BJ's Wholesale’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $4.96 billion, indicating an increase of 3.7% from the figure reported in the year-ago quarter. BJ has a trailing four-quarter earnings surprise of 10.2%, on average.
Target (TGT - Free Report) currently has an Earnings ESP of +0.19% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.47 suggests a decrease of 4.6% from the year-ago quarter.
Target’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.32 billion, which indicates a decline of 4.5% from the figure reported in the prior-year quarter. TGT has a trailing four-quarter earnings surprise of 13.3%, on average.
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Albertsons (ACI) Lined Up for Q2 Earnings: What's in Store?
Albertsons Companies, Inc. (ACI - Free Report) is likely to register a marginal increase in the top line when it reports second-quarter fiscal 2023 results on Oct 17 before market open. The Zacks Consensus Estimate for revenues is pegged at $18,203 million, indicating growth of 1.6% from the prior-year reported figure.
The bottom line of this food and drug retailer in the United States is expected to decline year over year. The Zacks Consensus Estimate for earnings per share for the quarter under discussion has been stable at 57 cents over the past 30 days. The figure suggests a decrease from the earnings of 72 cents reported in the year-ago period.
Albertsons Companies has a trailing four-quarter earnings surprise of 17.9%, on average. In the last reported quarter, this Boise, Idaho-based company surpassed the Zacks Consensus Estimate by 14.8%.
Key Factors to Note
Albertsons Companies, with its strategic focus on enhancing in-store services, digital capabilities and productivity, is poised for a decent second quarter. The company's expansion of digital payment facilities and online assortments, coupled with efforts to enhance fresh and Own Brands categories, has significantly elevated the customer experience. The robust Drive Up & Go curbside pickup service and efficient home delivery capabilities further bolster its digital initiatives.
For the second quarter, we anticipate identical sales, excluding fuel, to rise 2.1%, reflecting the company's successful strategies. Sales from the fresh category are anticipated to increase 3.6% to $6,156 million, showcasing the effectiveness of Albertsons Companies' assortment enhancements and customer-focused approach.
Despite these positive trends, there are challenges to navigate. Margins are a key area of concern due to costs associated with digital fulfillment and increased employee expenses. Additionally, in its latest earnings release, the company stated that the decrease in COVID-19 vaccinations and at-home test kit revenues is projected to cause an approximate $130 million headwind to adjusted EBITDA for the remaining three quarters of fiscal 2023. As a result, we anticipate a 60-basis point contraction in the adjusted EBITDA margin, settling at 5.3% year over year for the second quarter.
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 does not conclusively predict an earnings beat for Albertsons Companies this time. 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. However, that’s not the case here.
Albertsons Companies has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.92% and a Zacks Rank of 2. The company is likely to register a decrease in the bottom line when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.00 suggests a decline of 6.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.49 billion, which suggests an increase of 6.3% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 12.9%, on average.
BJ's Wholesale Club (BJ - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 96 cents suggests a drop of 3% from the year-ago quarter.
BJ's Wholesale’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $4.96 billion, indicating an increase of 3.7% from the figure reported in the year-ago quarter. BJ has a trailing four-quarter earnings surprise of 10.2%, on average.
Target (TGT - Free Report) currently has an Earnings ESP of +0.19% and carries a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.47 suggests a decrease of 4.6% from the year-ago quarter.
Target’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $25.32 billion, which indicates a decline of 4.5% from the figure reported in the prior-year quarter. TGT has a trailing four-quarter earnings surprise of 13.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.