11:07 AM EST, 01/08/2025 (MT Newswires) -- Albertsons Companies' ( ACI ) fiscal third-quarter earnings came in ahead of Wall Street estimates but revenue missed expectations while the grocery chain raised its full-year bottom-line outlook despite a cautious consumer environment.

Revenue climbed to $18.77 billion for the three months ended Nov. 30 from $18.56 billion a year ago but was below the $18.81 billion average analyst estimate on FactSet. Adjusted earnings per share fell to $0.71 from $0.79 last year but topped the $0.66 consensus.

Identical sales were up 2%, in line with Wall Street expectations, primarily reflecting strong growth in pharmacy, the company said. Albertsons' ( ACI ) digital sales advanced 23%.

"We delivered solid operating and financial performance in the third quarter of fiscal 2024 in an environment where the consumer remains cautious," Chief Executive Vivek Sankaran said in a statement. Consumers continue to be price sensitive, he told analysts on a conference call, according to a FactSet transcript.

For the full year, Albertsons ( ACI ) now sees adjusted EPS between $2.25 and $2.31, compared with its prior view of $2.20 to $2.30. It expects identical sales growth between 1.8% and 2%, lowering the high end of the range from 2.2% previously. Analysts surveyed by FactSet are modeling for adjusted EPS of $2.27 and same-store sales of 2% in the period.

Last month, Albertsons ( ACI ) terminated its proposed $25 billion acquisition by Kroger (KR) after two courts ruled to block the deal. It sued Kroger for "willful breach of contract" for allegedly failing in its effort to secure regulatory approval.

"While we are disappointed that the merger was terminated, we never stopped investing in our business or driving our Customers for Life strategy," Sankaran said on the call Wednesday.

The company plans to accelerate that strategy and continue leveraging investments to enhance digital engagement and omnichannel revenue growth, he said.

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