Why Albertsons Plunged Today
Shares of grocery store chain Albertsons (NYSE: ACI) fell 8% on Tuesday as of 1:00 p.m. ET. Albertsons reported earnings today, and while the past quarter's results were solid, management's forward outlook for profits was well below analyst expectations.
Albertsons stock had actually increased year to date, even as the overall market fell on tariff concerns and economic uncertainty. So, perhaps it was due for a pullback. Moreover, Albertsons' CEO is about to retire, which may have played a role in the conservative guidance.
In the fourth quarter, Albertsons' revenue grew 2.5% to $18.8 billion, helped along by a 2.3% increase in same-store sales, which was in line with expectations. Adjusted (non-GAAP, or non-generally accepted accounting principles) earnings per share (EPS) fell 15% to $0.46; however, that actually came in ahead of analyst expectations of $0.41.
Source Fool.com
