Albertsons Reports Strong Q3 Profits Despite Terminated Kroger Merger

The grocery chain's earnings exceeded expectations, but revenue narrowly missed estimates as competition and merger fallout weigh on performance.

Albertsons posted a Q3 net income of $400.6 million, surpassing analyst expectations of $318.1 million and up from $361.4 million a year ago.
Revenue for the quarter rose to $18.77 billion, slightly below the $18.82 billion analyst consensus, with a 2% growth in identical sales excluding fuel.
The company's gross margin dipped slightly to 27.9% from 28.0% last year, attributed to increased pharmacy sales and digital costs.
Albertsons filed a lawsuit against Kroger after their $25 billion merger was blocked by federal judges, citing competition concerns.
The company raised its quarterly dividend to $0.15 per share, authorized a $2 billion share repurchase program, and adjusted its full-year EPS guidance to $2.25-$2.31.