Albertsons’ revenue jumps 21.8% in the fiscal first quarter

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Written on Jul 27, 2020

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Albertsons says its revenue jumped 21.8% in the fiscal first quarter.
The U.S. grocery company posts £456.14 million of net income in Q1.
The company values its COVID-19 related investments at £418.55 million.

Albertsons (NYSE: ACI) released its quarterly financial results on Monday that highlighted stronger than expected earnings in the fiscal first quarter. The company published its first earnings report today after going public last month. Albertsons returned to NYSE on 26^th June at a per-share price of £12.02. The company had previously decided to go private in 2006.

Shares of the company jumped about 1% in premarket trading on Monday. At £12.66 per share, Albertsons is roughly 5% up since its IPO in June. Earlier in July, the stock dropped to as low as £10.89 per share. Learn more about why prices rise and fall in the stock market.

Albertsons’ Q1 financial results versus analysts’ estimates

According to FactSet, analysts had anticipated the company to print £17.73 billion in revenue in the first quarter. Their estimate for earnings per share (EPS) was capped at £1.03. In its report on Monday, Albertsons fell shy of the estimate for revenue posting a lower £17.70 billion in Q1. Its EPS, however, came in stronger than expected at £1.05.

At £456.14 million, the grocer’s net income in the first quarter came in significantly higher than £38.13 million in the same quarter last year. Its revenue was also reported about 21.5% higher on a year over year basis. In contrast, Hasbro recorded a net loss of £26.36 million in the second quarter.

Amidst the COVID-19 restrictions, the company benefitted primarily from digital sales that it said climbed by 276% in the recent quarter. In terms of same-store sales, Albertsons reported a 26.5% increase on an annualised basis. The U.S. grocer expanded its store-brand ice cream selection last week.

The American grocery company still said that it took a hit in Q1 due to lower fuel sales and temporary closures of stores to minimise the fast spread of the flu-like virus. Albertsons valued its COVID-19 related investments in the first quarter at £418.55 million that includes over £214 million to frontline workers in additional pay.

Citing COVID-19 that has so far infected more than 4 million people in the United States and caused a little under 150,000 deaths, the Boise-based company refrained from giving its future financial guidance on Monday.

At the time of writing, Albertsons has a market cap of £6.01 billion.