09:10 AM EDT, 10/03/2025 (MT Newswires) -- Albertsons ( ACI ) is expected to report higher fiscal second-quarter identical sales growth than previously estimated by RBC Capital Markets, while core profit is projected to come in lower than prior projections.

The brokerage forecasts the grocery chain to record a 2% increase in identical sales for the second quarter, up from its previous expectations for a 1.8% rise, it said in a Friday client note. The current consensus on FactSet is for same-store sales growth of 2.1% for the quarter.

Albertsons ( ACI ) is scheduled to release its latest quarterly results on Oct. 14.

The company's core grocery sales likely decelerated to 0.6% growth in the second quarter, compared with a 0.8% gain in the prior three-month period, according to the RBC note. The brokerage estimates pharmacy to have inclined 13%, up from its previous projections of 10%, based on industry conversations and continued pharmacy strength at rival companies, including Walmart (WMT), Kroger (KR) and CVS Health (CVS).

"(Albertsons ( ACI )) is lapping over +22.5% pharmacy growth (year ago)," RBC analyst Steven Shemesh wrote in the note. "It's also worth calling out that this year's COVID vaccine was approved later than last year's, which is likely to further weigh on profitability given the high margin nature of that service."

RBC expects the grocery chain to now post adjusted earnings before interest, taxes, depreciation and amortization of $821 million for the second quarter, down from its prior forecast of $844 million, due to "increased competition necessitating a greater degree of price investment" and the brokerage's higher pharmacy growth estimate. The Street is looking for $824.7 million.

Shemesh expects Albertsons ( ACI ) to reiterate its fiscal 2025 outlook, but said investors may remain cautious over ongoing price investment concerns and low visibility into margin-related tailwinds.

In July, the company said it expects full-year adjusted earnings in a range of $2.03 to $2.16 a share, while identical sales were pegged to rise between 2% and 2.75%. Analysts polled by FactSet currently expect non-GAAP EPS of $2.09 and same-store sales growth of 2.5%.

RBC lowered its price target for the stock to $21 from $23, with an outperform rating.