Albertsons Cos. Raises FY21 Outlook As Q2 Results Top Estimates; Boosts Dividend 20% - Quick Facts

While reporting financial results for the second quarter on Monday, food and drug retailer Albertsons Companies, Inc. (ACI) raised its adjusted earnings and identical sales guidance for the full-year 2021.

For fiscal 2021, the company now projects adjusted earnings in a range of $2.50 to $2.60 per share on identical sales decline of 2.5 to 3.5 percent, representing two-year stacked growth of 13.4 to 14.4 percent.

Previously, the company expected adjusted earnings in the range of $2.20 to $2.30 per share on identical sales decline of about 5 to 6 percent, representing two-year stacked growth of 10.9 to 11.9 percent.

On average, 18 analysts polled by Thomson Reuters expect the company to report earnings of $2.28 per share on net sales decline of 2.70 percent to $67.84 billion for the year. Analysts' estimates typically exclude special items.

For the second quarter, net income grew to $295.2 million or $0.52 per Class A common share from $284.5 million or $0.49 per Class A common share in the prior-year quarter.

Excluding items, adjusted net income was $0.64 per Class A common share, compared to $0.60 per Class A common share in the year-ago quarter.

Sales and other revenue increased to $16.5 billion from $15.8 billion in the same quarter last year, primarily driven by the Company's 1.5% increase in identical sales and higher fuel sales. Identical sales growth was 15.3% on a two-year stacked basis.

The Street was looking for earnings of $0.45 per share on net sales of $15.81 billion for the quarter.

Based on the continued strong performance and balanced overall approach to capital allocation, the Company also announced a 20% increase to its quarterly dividend to $0.12 per share of Class A common stock, payable on November 12, 2021 to stockholders of record as of October 29, 2021.

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