Shares in food and drugstore group Albertsons Companies (ACI) sank about 6% on Wednesday afternoon after its Q3 2025 results showed uneven performance and very modest sales and earnings growth.
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Albertsons Sees Mixed Performance
In the third quarter that ended on November 29, the Idaho-based company grew its earnings per share by about 1% from a year ago to 72 cents, above the Wall Street consensus estimate of 68 cents. However, the company’s $19.12 billion revenue — which grew about 2% from $18.77 billion seen during the same quarter last year — fell short of analysts’ projections of $19.16 billion in sales.
With the latest results, ACI continues its track record of exceeding analysts’ forecasts for its earnings per share, as the image below shows.
Albertsons CEO Touts ‘Solid Results’
The modest sales come as Albertsons, alongside fellow retailers like Walmart (WMT), Kroger (KR), and Target (TGT), has been embroiled in a baby botulism lawsuit. This also follows a disruption to SNAP benefits during the quarter. SNAP is the U.S. federal food aid program that helps low-income Americans buy groceries.
However, Susan Morris noted that the company delivered “solid results” even as identical sales — from stores that have been open for at least a year — grew by 2.4% in the quarter, with digital sales rising by a significantly higher 21%.
“Growth in our digital and pharmacy channels, combined with disciplined execution and targeted investments, is strengthening our value proposition and positioning us for success,” Morris further noted.
Looking ahead, Albertsons trimmed the upper range of its expected adjusted EPS for the full fiscal year 2025 from $2.19 to $2.16, with the new range slightly above the consensus of $2.15 per share. The previous lower end of the range stood at $2.06, and the new lower end is $2.08.
Is ACI a Good Stock to Buy?
On Wall Street, Albertsons Companies’ shares remain a Moderate Buy. This is based on nine Buys and four Holds issued by 13 analysts over the past three months.
However, the average ACI price target of $23.58 implies about 46% upside from current trading levels. Nonetheless, it is important to note that the consensus on Wall Street might change as more analysts update their ratings to reflect the latest earnings results.
