Albertsons Companies Inc (NYSE:ACI) stock rose 5.34% (As on April 16, 11:20:52 AM UTC-4, Source: Google Finance) after the company issued a full-year earnings outlook below Wall Street expectations, even though the grocery chain’s fiscal fourth-quarter results topped estimates. Identical store sales inclined 2.3% amid strong growth in pharmacy sales, while analysts were expecting a 1.8% increase. Digital sales jumped 24%. Gross margin rate decreased to 27.4% during the fourth quarter of fiscal 2024 compared to 28.0% during the fourth quarter of fiscal 2023. Excluding the impact of fuel and LIFO, gross margin rate decreased 45 basis points compared to the fourth quarter of fiscal 2023. The strong growth in pharmacy sales, which carries an overall lower gross margin rate, and increases in delivery and handling costs related to the 24% growth in our digital sales were the primary drivers of the decrease. Net loss on property dispositions and impairment losses was $36.4 million during the fourth quarter of fiscal 2024 compared to $0.8 million during the fourth quarter of fiscal 2023. Adjusted net income was $269.5 million, during the fourth quarter of fiscal 2024 compared to $318.0 million during the fourth quarter of fiscal 2023. Adjusted EBITDA was $855.1 million during the fourth quarter of fiscal 2024 compared to $915.8 million during the fourth quarter of fiscal 2023. During fiscal 2024, capital expenditures were $1,931.2 million, which primarily included the completion of 127 remodels, the opening of 11 new stores and continued investment in our digital and technology platforms.
ACI in the fourth quarter of FY24 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents. The company had reported the adjusted revenue of $18.8 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $18.64 billion.
Additionally, during the fourth quarter of fiscal 2024, the Company repurchased an aggregate of 4.1 million shares of common stock for a total of $82.5 million pursuant to such share repurchase authorization.
Adjusted earnings are anticipated to be in a range of $2.03 to $2.16 a share for fiscal 2025, the company said. The current FactSet consensus is for $2.29. In the previous fiscal year, adjusted EPS fell to $2.34 from $2.88 on an annual basis.
Identical sales are pegged to rise between 1.5% and 2.5% for the ongoing fiscal year, while the Street is looking for an increase of 1.8%. Albertsons recorded identical sales growth of 2% in fiscal 2024.