Albertsons shares fell 23.7% after the grocery retailer reported disappointing second-quarter results and lowered its full-year financial forecast. Revenue of $24.94 billion was roughly flat year-on-year and narrowly beat analyst expectations, but adjusted earnings per share of $0.42 missed the consensus estimate of $0.54. Management cut its full-year adjusted EPS guidance to a midpoint of $1.80, a 20.7% decrease, and reduced its full-year adjusted EBITDA forecast to $3.59 billion, below Wall Street's expectation of $3.89 billion. The significant earnings miss and bleak outlook signaled that profitability is under pressure, leading to a sharp sell-off in the stock.
Albertsons CompaniesEarnings miss and guidance cut signal deteriorating profitability.