
What Happened?
Shares of grocery retailer Albertsons (NYSE: ACI) fell 7.6% in the morning session after the company reported its third-quarter 2025 results, which featured a mixed financial outlook for the full year.
During the quarter, the company's performance was solid, meeting revenue expectations with $18.92 billion in sales and beating analysts' forecasts for both adjusted earnings per share and EBITDA. Same-store sales, a key metric for retailers, also grew by 2.2%. However, investors focused on the company's guidance for the remainder of the year. Albertsons' forecast for full-year adjusted earnings per share came in at a midpoint of $2.12, which missed Wall Street's expectations. This weaker-than-expected profit outlook suggested potential pressure on future earnings, overshadowing the quarter's positive results and leading to a sell-off in the stock.
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What Is The Market Telling Us
Albertsons’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Albertsons is down 7.4% since the beginning of the year, and at $16.03 per share, it is trading 30% below its 52-week high of $22.91 from April 2025. Investors who bought $1,000 worth of Albertsons’s shares 5 years ago would now be looking at an investment worth $951.45.
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