Albertsons raises forecast after beating sales on pandemic-driven food demand

vCos Inc on Tuesday beat quarterly estimates for earnings and raised its annual projections, as a resurgence of coronavirus cases led to more than tripling of online sales, sending the grocer's shares up about 4%.

Several grocery retailers across the United States have ramped up their e-commerce platforms, from online ordering to flexible delivery options, as consumers change the way they shop as they stay away from large crowds and gatherings.

Like its rivals, Albertsons has invested heavily in technology to make shopping easier and minimizing contact, by delivering groceries using robots when consumers shop online or collect in stores.

Albertsons, which also owns Vons and Safeway supermarkets, said online sales rose more than three-fold and had over 6 million new households shopping at its stores during the third quarter.

The company forecast fiscal 2020 earnings to be between $3.05 and $3.15 per share, compared with its prior projection of $2.75 to $2.85. It also raised its comparable sales forecast to 16.5% from 15.5%.

For the quarter ended Dec. 5, net sales and other revenue rose 9.3% to $15.41 billion, beating estimates of $15.34 billion, according to IBES data from Refinitiv.

Excluding one-time items, the company earned 66 cents per share, 24 cents above expectations.