Albertsons' Q4 Earnings Beat Estimates, Pharmacy Sales Rise 18% Y/Y

Core Insights - Albertsons Companies, Inc. reported a year-over-year increase in net sales for the fourth quarter of fiscal 2024, surpassing the Zacks Consensus Estimate, while adjusted earnings per share declined but still beat expectations [1][3][14] - The company is focusing on its "Customers for Life" strategy, which aims to drive future growth and value creation through investments in core business areas, including digital platforms and media [2][13] Financial Performance - Adjusted earnings per share for the fourth quarter were 46 cents, exceeding the consensus estimate of 40 cents, but down 14.8% from 54 cents in the prior year [3] - Net sales reached $18,799.5 million, a 2.5$5.1 billion, a slight increase of 0.1% year-over-year, but gross margin contracted by 60 basis points to 27.4% [5] - Selling and administrative expenses rose by 2.5% to $4.8 billion, maintaining a rate of 25.7$855.1 million, with an adjusted EBITDA margin of 4.5%, down 50 basis points [8] Financial Snapshot - As of February 22, 2025, cash and cash equivalents stood at $293.6 million, with long-term debt totaling$7.8 billion and total stockholders' equity at $3.4 billion [9] Capital Expenditures and Dividends - Capital expenditures for fiscal 2024 were$1.9 billion, reflecting store remodels and investments in digital platforms, with expectations for fiscal 2025 expenditures between $1.7 billion and$1.9 billion [10] - The company raised its quarterly dividend by 25% to 15 cents per share, with the next payment scheduled for May 9, 2025 [11] Future Outlook - For fiscal 2025, Albertsons anticipates identical sales growth of 1.5-2.5% and adjusted EBITDA between $3.8 billion and$3.9 billion [13] - Adjusted earnings per share are projected to be in the range of $2.03-$2.16, reflecting a decrease from $2.34 in fiscal 2024 [14]