ALBERTSONS COMPANIES Reports 11.5% Revenue Decrease but 8.5% Increase in Net Income for Third Quarter of FY2023
January 17, 2023
Earnings report
Albertsons Companies Stock Fair Value – ALBERTSONS COMPANIES ($NYSE:ACI) is an American publicly traded company specializing in the ownership and operation of supermarkets, drug stores, convenience stores, and food and drug stores. On January 10th 2023, the company reported their earnings results for the third quarter of FY2023, which ended on November 30th 2022. The company’s total revenue amounted to USD 375.5 million, showing a decrease of 11.5% compared to the same quarter of the previous year. Despite this decrease in revenue, ALBERTSONS COMPANIES reported net income of USD 18154.9 million, showing an increase of 8.5% year-over-year.
Overall, ALBERTSONS COMPANIES reported a decrease in total revenue but an increase in net income for the third quarter of FY2023. This suggests that their cost reduction initiatives have been effective and that the company is strengthening their position financially. Moving forward, investors will be looking to see if these trends continue as the company works to recover from the effect of the pandemic.
Price History
On Tuesday, ALBERTSONS COMPANIES reported a revenue decrease of 11.5% for the third quarter of fiscal year 2023. The company’s net income, however, increased by 8.5% for the same period. The company’s stock opened at $21.2 and closed at $21.3, up by 1.8% from prior closing price of 20.9. Despite the decrease in revenue, the company’s net income increase is considered a positive signal. The company’s financial performance was driven by cost reduction efforts and an increase in operating efficiency. ALBERTSONS COMPANIES also saw an improvement in its gross margin, despite the decrease in revenue.
In addition, the company reported strong growth in digital sales, which helped offset some of the impact of lower store traffic due to the pandemic. Overall, ALBERTSONS COMPANIES reported mixed results for the third quarter of fiscal year 2023. While the company’s revenue decreased by 11.5%, its net income improved 8.5%. These results indicate that the company is continuing to make progress in improving its financial performance despite the challenging market conditions caused by the pandemic. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Albertsons Companies. More…
| Total Revenues | Net Income | Net Margin |
| 76.77k | 1.61k | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Albertsons Companies. More…
| Operations | Investing | Financing |
| 2.8k | -1.84k | 746.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Albertsons Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.21k | 29.4k | 1.53 |
Key Ratios Snapshot
Some of the financial key ratios for Albertsons Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | 31.4% | 3.4% |
| FCF Margin | ROE | ROA |
| 1.1% | 62.2% | 5.4% |
VI Analysis – Albertsons Companies Stock Fair Value Calculator
This app provides a fair value of ALBERTSONS COMPANIES shares at around $17.8. Currently, ALBERTSONS COMPANIES stock is being traded at a price of $21.3, representing a share price which is overvalued by 20%. The company’s fundamentals are an indication of its potential for growth in the long term. This could include factors such as cash flow, sales growth, and margins that indicate the strength of the company. Moreover, its financial health is also a factor to consider when looking at the company’s long term prospects. Furthermore, the company’s share price has been rising steadily over the past few years, indicating that investors are optimistic about its future prospects. Overall, ALBERTSONS COMPANIES shares are currently trading at a fair price that is overvalued by 20%. This could be seen as an indication of the company’s potential for growth and long-term success. As such, investors should conduct further research into the company to gain a better understanding of its fundamentals and long term prospects before making any investment decisions. More…
VI Peers
Albertsons Companies Inc is one of the largest food and drug retailers in the United States, with more than 2,200 stores in 36 states and the District of Columbia. The company operates under 19 banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Shaw’s, Star Market, United Express, Jewel-Osco, Acme Markets, Albertsons Market, Carrs, Haggen, Lucky, Market Street, Pavilions, and United. Albertsons Companies is headquartered in Boise, Idaho. The company’s primary competitors are The Kroger Co, Sprouts Farmers Market Inc, and Costco Wholesale Corp.
– The Kroger Co ($NYSE:KR)
Kroger Co is a grocery store chain with a market cap of 30.19B as of 2022. It has a Return on Equity of 23.61%. The company operates through various brands including Ralphs, Harris Teeter, Food 4 Less, and Fred Meyer. It offers a wide variety of products and services such as groceries, pharmacy, health & beauty, and general merchandise. Kroger also has a loyalty program called “Kroger Rewards” which allows customers to earn points on every purchase which can be redeemed for discounts on future purchases.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc. is an American supermarket chain headquartered in Phoenix, Arizona, that specializes in selling fresh, natural, and organic foods. As of May 2021, the company operated 340 stores in 23 states across the United States.
The company has a market cap of $3 billion as of 2022 and a return on equity of 21.14%. Sprouts Farmers Market is a publicly traded company on the Nasdaq stock exchange under the ticker symbol SFM.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corporation is a membership-only warehouse club that provides a wide array of merchandise, including food, electronics, housewares, and clothing. As of 2022, it had a market cap of 205.64 billion and a return on equity of 24.62%. Costco is known for its low prices and its wide range of merchandise, which it sells in bulk quantities. The company also offers its members gas stations, pharmacies, optical centers, and travel services.
Summary
Investors looking to gain exposure to ALBERTSONS COMPANIES should consider the company’s third quarter of FY2023 earnings results, released on January 10 2023. The company reported total revenue of USD 375.5 million, a decrease of 11.5% year-over-year, but net income for the period was up 8.5%, totaling USD 18154.9 million. This suggests that the company is still performing well in spite of the challenging macroeconomic environment. ALBERTSONS COMPANIES has a diversified portfolio of products and services across its different business segments, which should provide investors with stability and a hedge against any potential market downturns. Moreover, the company has been expanding its e-commerce operations, which provides further potential for growth.
In addition, its stock is currently trading at a relatively low price-to-earnings ratio, indicating that it may be undervalued compared to its peers. Overall, ALBERTSONS COMPANIES appears to be an attractive investment opportunity for long-term investors. The company’s strong fundamentals and its potential for future growth suggest that it may be a good choice for those looking to gain exposure to the retail sector.
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