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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 an increase in the top line when it reports second-quarter fiscal 2022 results on Oct 18 before market open. The Zacks Consensus Estimate for revenues is pegged at $17.63 billion, indicating growth of 6.8% 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 risen by a penny to 63 cents over the past seven days. The figure suggests a decline from the earnings of 64 cents from the year-ago period.

Albertsons Companies has a trailing four-quarter earnings surprise of 25.7%, on average. In the last reported quarter, this Boise, Idaho-based company surpassed the Zacks Consensus Estimate by 11.1%.

Key Factors to Note

Albertsons Companies' focus on providing efficient in-store services, enhancing digital and omnichannel capabilities and increasing productivity has been contributing to its top line. The company has been enhancing digital payment facilities alongside expanding the availability of online assortments. We expect identical sales to increase 5.2% in the second quarter.  

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 programs and the 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 the Drive Up & Go curbside pickup service and sharpening home delivery capabilities.

The aforementioned factors instill optimism regarding the outcome of the results. However, margins remain an area to watch. The impact of costs associated with digital fulfillment, the supply chain and pandemic-related expenses cannot be ruled out. Product cost inflation and a tight labor market 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. 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, which is the case here. You can see the complete list of today's Zacks #1 Rank stocks here.

Albertsons Companies has an Earnings ESP of +0.69% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

3 More Stocks With the 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:

Kroger (KR - Free Report) currently has an Earnings ESP of +0.31% and a Zacks Rank #2. The company is likely to register a bottom-line improvement when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 80 cents suggests an improvement from 78 cents reported in the year-ago quarter.

Kroger's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $33.92 billion, which indicates an improvement of 6.5% from the figure reported in the prior-year quarter. KR has a trailing four-quarter earnings surprise of 15.7%, on average.

Tractor Supply Company (TSCO - Free Report) currently has an Earnings ESP of +0.68% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.09 suggests an increase of 7.2% from the year-ago reported number.

Tractor Supply's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.28 billion, which suggests an increase of 8.8% from the prior-year quarter. TSCO has a trailing four-quarter earnings surprise of 10.2%, on average.

Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.15 suggests an increase of 6.1% from the year-ago quarter.

Costco's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $54.98 billion, indicating an increase of 9.2% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.

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

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