Albertsons Companies, Inc. (NYSE:ACI) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

The annual results for Albertsons Companies, Inc. (NYSE:ACI) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$80b and statutory earnings per share of US$1.64 both in line with analyst estimates, showing that Albertsons Companies is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for Albertsons Companies from 17 analysts is for revenues of US$83.3b in 2026. If met, it would imply a satisfactory 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.0% to US$1.75. Before this earnings report, the analysts had been forecasting revenues of US$82.2b and earnings per share (EPS) of US$1.89 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Albertsons Companies

The consensus price target held steady at US$23.41, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Albertsons Companies at US$27.00 per share, while the most bearish prices it at US$19.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Albertsons Companies' past performance and to peers in the same industry. We would highlight that Albertsons Companies' revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2026 being well below the historical 4.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Albertsons Companies.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Albertsons Companies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Albertsons Companies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Albertsons Companies. Long-term earnings power is much more important than next year's profits. We have forecasts for Albertsons Companies going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Albertsons Companies .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.