Albertsons Companies reported third‑quarter fiscal 2025 revenue of $19.12 billion, a 1.9 % year‑over‑year increase that fell short of the $19.17 billion consensus estimate. The miss was largely driven by a shift toward lower‑margin fuel and grocery sales and higher delivery and handling costs that offset the gains in digital and pharmacy channels.
Adjusted earnings per share rose to $0.72, beating the consensus estimate of $0.40 (or $0.68) by $0.32 (or $0.04). The strong beat was supported by disciplined cost control, a 18 % increase in pharmacy sales, and a 21 % rise in digital sales that helped lift pricing power and margin contribution.
Pharmacy sales grew 18 % and digital sales increased 21 %, together driving identical sales growth of 2.4 %. However, the mix shift to lower‑margin fuel and grocery sales, coupled with higher delivery costs, compressed gross margin to 27.4 %, a 50‑basis‑point decline from the prior year.
Management reiterated its full‑year outlook, maintaining revenue guidance of $75–$76 billion while narrowing identical sales growth to 2.2 %–2.5 %. Adjusted EBITDA guidance was set at $3.825 billion to $3.875 billion, and adjusted EPS guidance was $2.08 billion to $2.16 billion. The tightening reflects headwinds from the Inflation Reduction Act’s Medicare drug‑price negotiation program and ongoing cost inflation.
CEO Susan Morris emphasized disciplined execution, AI investments, and the $1.5 billion productivity program, expressing confidence in long‑term value creation despite near‑term headwinds. The company also confirmed its $1.35 billion share‑repurchase plan and a quarterly dividend of $0.15 per share.
After the release, the market reacted modestly, with investors weighing the revenue miss and guidance tightening against the EPS beat and strong digital and pharmacy growth.
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