Life after Kroger fallout, Albertsons tumbles on earnings miss and slashed guidance

Albertsons Companies, Inc. (NYSE: ACI) reported first-quarter results that missed analyst expectations and significantly reduced its full-year outlook, citing pressure from softer industry trends and a more cautious consumer.

The grocery chain reported adjusted earnings per share of $0.42 for the first quarter ended June 20, missing the analyst consensus of $0.54 by $0.12. Revenue increased 0.2% YoY to $24.94 billion, slightly above the analyst estimate of $24.83 billion. Identical sales decreased 0.8% during the quarter, while digital sales grew 13% and pharmacy sales continued to expand despite headwinds from the Inflation Reduction Act.

Shares plunged 18.5% premarket following the announcement.

Albertsons now expects adjusted EPS of $1.75 to $1.85, with a midpoint of $1.80 that falls well below the analyst consensus of $2.27. The company also lowered its adjusted EBITDA guidance to a range of $3.550 billion to $3.625 billion from a previous range of $3.850 billion to $3.925 billion.