Published on 18 Apr 2024 on Zacks via Yahoo Finance

Factors to Note Ahead of Albertsons' (ACI) Q4 Earnings

Albertsons Companies, Inc. ACI is likely to register a marginal increase in the top line when it reports fourth-quarter fiscal 2023 results on Apr 22 before market open. The Zacks Consensus Estimate for revenues is pegged at $18,417 million, which indicates growth of 0.8% from the prior-year reported figure.The bottom line of this operator of membership warehouse clubs is expected to decrease year over year. The Zacks Consensus Estimate for fourth-quarter earnings per share has been stable at 54 cents over the past 30 days. The consensus figure suggests a decline of 31.7% from the year-ago quarter.Albertsons Companies has a trailing four-quarter earnings surprise of 14.9%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 19.7%.

Factors to Consider

Albertsons Companies’ focus on providing efficient in-store services, enhancing digital and omnichannel capabilities and increasing productivity has been contributing to its performance.Efforts to boost assortments, especially in the fresh and Own Brands categories, continue to elevate the customer experience. The company, through its “just for U” loyalty program, has been acquiring new customers and retaining old members, as well as incentivizing them to spend more and buy more often.Despite the aforementioned tailwinds, we expect business trends to moderate owing to the tough macro-environment. A reduction in federal and state government assistance, as well as higher interest rates, has led to changes in purchasing behavior or decreased demand for certain products.The resumption of student loan payments and other payment deferrals suggests that consumers may have less disposable income available for discretionary spending, which could have impacted sales.