Albertsons stock jumps after better-than-expected earnings, upbeat guidance

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Albertsons Cos. Inc. stock jumped 4.7% in Tuesday premarket trading after the grocery retailer reported second quarter earnings that beat expectations and gave upbeat full-year guidance. Net income totaled $284.5 million, or 49 cents per share, up from $294.8 million, or 51 cents per share, last year. Adjusted EPS of 60 cents blew past the FactSet consensus of 27 cents. Sales of $15.76 billion were up from $14.18 billion last year and ahead of the FactSet consensus of $15.44 billion. Digital sales soared 243%. And identical sales grew 13.8%, ahead of the 12% growth FactSet forecast. Albertsons says it has seen “significant increases in product demand and overall basket size” as well as its digital business due to COVID-19. The company expects fiscal 2020 identical sales to grow 15.5% and adjusted EPS growth in the range of $2.75 to $2.85. The FactSet consensus is for identical sales growth of 12.9% and EPS of $2.18. Albertsons, which went public in June, has seen its stock gain 7.8% over the past three months while the S&P 500 index is up 5.4% for the period.
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