Albertsons Companies, Inc. ($ACI) Earnings (Q4 FY21)

 Albertsons Companies, Inc. ($ACI) Earnings and Opinion:


Albertsons Companies is a company in the Consumer Defensive sector and operates in the Grocery Stores industry. The company has food and drug stores all across the United States. Albertsons was founded in 1860 and is currently headquartered in Boise, Idaho. The company was first introduced on the stock market in 2020.

Albertsons Companies, Inc. EPS and Revenue (Q4 FY21):

  • EPS of $0.75 beating expectations of $0.65
  • Revenue of $17.38B beating expectations of $16.84B
  • EPS was up 25% (YOY) and Revenue was up 10.2% (YOY)
Albertsons Companies, Inc. EPS and Revenue (FY21):
  • EPS if $3.07 beating expectations of $2.97
  • Revenue of $71.89B beating expectations of $71.30B
  • EPS was down 5.2% (YOY) and Revenue was up 3.2% (YOY)
Albertsons Companies, Inc. Financial Outlook (FY22):
  • Sales growth of around 2-3%
  • Adjusted EBITDA of $4.15B-4.25B
  • EPS in range of $2.70-$2.85
  • Capital Expenditures of $2B-2.1B
Opinion:
Albertsons Companies traded lower today even though they beat expectations on their earnings. I think some of this has to do with the blame of external factors, such as food stamp users are starting to become more apparent with inflation on the rise. As well as the fact that their financial outlook looks a little weary in terms of sales growth, and also the capital expenditures seem to be a little high. I was surprised with the movement of the stock today, I think the company provided some solid numbers to end out the fiscal year, so maybe the movement of the stock was mainly influenced by the overall movement of the market. Albertsons also came out with news that they were going to issue a dividend of $0.12 a share to shareholders as well. This was some big news that I would've thought would bring the stock a little bit higher during trading today, but I guess not. Diving deeper into the valuations of the company, the profit margin and operating margin are right near industry averages, so they are in a pretty good position in that place. They have an operating cash flow that is positive, but they do have a lot of debt. The current ratio is in a good place, and the quarterly revenue growth is at a fair rate. I like the dividend here, they just increased it to $0.48 a year per share, which is a 1.36% yield. They are able to payout their dividend by only taking 24.56% from their company earnings. This is showing some signs of growth in their dividend, while they are still able to invest in themselves. Albertsons has not been trading too long on the stock market, so it is interesting to see how well they are performing. They have nearly doubled in price since the IPO of the company, and they are already issuing dividends to shareholders. This company is definitely one to watch out for if you are interested in dividend growth stocks, I see it for some potential to grow not only as a company but also its dividend as well. I also believe this company has built a solid foundation and will be hard to put out of business. If you're looking for a staple company with little risk, this isn't too bad of a company to acquire a position in.



*Information from Yahoo Finance, Albertsons, and Nasdaq
*Estimates from Zacks

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