Albertsons Companies, Inc. (NYSE:ACI) shares are trading slightly lower on Wednesday.
Yesterday, the supermarket chain beat second-quarter earnings and sales estimates, fueled by strong digital growth and rising identical-store sales. It also announced a $750 million accelerated share repurchase and raised its full-year profit outlook.
• ACI shares are consolidating after recent moves. Get the latest updates here.
The firm reported the second quarter adjusted earnings per share of 44 cents, beating the analyst consensus estimate of 40 cents.
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Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the stock, with a price forecast of $24.
Feldman says the company’s turnaround is gaining traction and should set up “healthy” growth and profitability in 2026 and beyond, with 2025 positioned as an investment year.
He adds that management is still pruning underperforming stores and non-core assets.
The key initiatives are brief and targeted: boost digital engagement, scale the media collective, sharpen value/loyalty and own brands with disciplined pricing, modernize tech (unified systems, cloud, AI) and drive lasting productivity.
Feldman highlights that Albertsons remains attractive as a defensive grocer with limited tariff exposure and an earnings rebound expected in 2026.
He notes the stock trades at about 4.7x 2026E EV/EBITDA — one to two turns below its historical range — leaving valuation upside.
Feldman raises his 2025 outlook, pointing to share repurchases and a modestly stronger margin. He now models EPS of $2.15 (from $2.11) and an adjusted EBITDA margin of 4.7%, down 32 basis points year over year.
Same-store (identical) sales stay at +2.5%, bringing his 2025 adjusted EBITDA to $3.89 billion (from $3.85 billion).
For 2026, the analyst lifts estimates to $2.29 EPS (from $2.24) and $3.97 billion in adjusted EBITDA (from $3.94 billion), with identical sales at +2.0% (from +2.1%).
ACI Price Action: Albertsons shares are trading lower by 0.29% to $19.20 at publication on Wednesday.
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