Albertsons Profits Top Estimates in First Quarter Since End of Kroger Merger | Global News Avenue

Shares of grocery retailer Albertsons (ACI) rose Wednesday morning after the company reported third-quarter earnings that beat analysts’ expectations and sales that fell slightly short of expectations.

Albertsons’ net profit for the quarter was $400.6 million, up from $361.4 million and $318.1 million in the same period last year. Analysts had expectedbased on estimates compiled by Visible Alpha. The profit came from revenue of $18.77 billion, better than the $18.56 billion a year ago but slightly below analysts’ average estimate of $18.8 billion.

CEO Vivek Sankaran said the company delivered solid quarterly results despite consumers being “cautious”.

Albertsons also slightly raised its outlook for the remainder of fiscal 2024, expecting adjusted Earnings per share (EPS) For the full fiscal year, it rose to $2.31 from $2.25, compared with $2.20 to $2.30 previously. It also lowered the upper limit of its projected range Same store sales It grew to 1.8% to 2%, down from the previous cap of 2.2%.

First report since Kroger merger closes, lawsuits begin

Wednesday was the chain’s first quarterly report since the proposed merger of Albertsons and Kroger (South Korea) was canceled last month after two judges The transaction was ruled invalid. The judges took sides Federal Trade Commission (FTC)which sued to block deal Early last year, it was ruled that the merger would possible consequences at lower wages and higher price Because there will be less competition in the industry.

The two companies have since accused each other of violating the merger agreement, and Albertsons has File a lawsuit Countering Kroger’s claims that the retailer knows it’s not doing enough, e.g. Agree to sell storeKroger denied that in order to get the merger approved and address the FTC’s concerns.

two companies also restarted their stock buyback The plan was put on hold to focus on winning regulatory approval for the merger.

Albertsons shares were up about 2% on Wednesday morning.