Investing.com – Albertsons stock (NYSE:ACI) traded 4.5% higher in Monday’s premarket as a strong second quarter led it to raise its annual outlook and declare a higher dividend.
Sales and other revenue for the quarter ended September 11 were 4.4% higher at $16.5 billion. The company attributed this to a 1.5% increase in comparable sales and to higher fuel sales.
Both revenue and adjusted earnings of 52 cents per share topped estimates.
Supply chain, product and advertising costs were higher compared to a year ago but they were offset by productivity gains and improved pharmacy margins related to the administering of Covid-19 vaccines.
Similarly, lower Covid-related expenses were offset by higher wages and investments in digital and omnichannel capabilities.
Growth in digital sales eased to a 5% after a scorching two-year run fueled by the pandemic, but the retailer still increased its quarterly dividend by 20% to 12 cents per share.
The company is now forecasting its sales at the midpoint of the annual guidance range to fall by 3%, less than the 5.5% drop it estimated earlier. Adjusted EBITDA is seen at $4 billion at center of the range now, higher than its previous $3.75-billion forecast.