Shares of grocery retailer Albertsons (ACI) rose Wednesday morning after the company reported better third-quarter earnings than analysts had expected, while sales fell just short of estimates.

Albertsons recorded $400.6 million in net income for the quarter, up from $361.4 million the same time last year and the $318.1 million analysts had expected, according to estimates compiled by Visible Alpha. That profit came on $18.77 billion in revenue, better than $18.56 billion a year ago but narrowly below the $18.8 billion analyst consensus.

CEO Vivek Sankaran said the company delivered a solid quarter despite a consumer who "remains cautious."

Albertsons also slightly lifted its outlook for the rest of fiscal 2024, expecting adjusted earnings per share (EPS) from $2.25 to $2.31 for the full fiscal year, up from $2.20 to $2.30 previously. It also lowered the top end of its projected range for same-store sales growth to 1.8% to 2%, down from a top end of 2.2% previously.

First Report Since End of Kroger Merger, Start of Lawsuit

Wednesday is the chain's first quarterly report since the proposed merger between Albertsons and Kroger (KR) was called off last month after a pair of judges ruled against the deal. The judges sided with the Federal Trade Commissions (FTC), which sued to block the deal early last year, ruling that the merger would be likely to result in lower wages and higher prices as competition in the industry would decrease.

The companies have since accused each other of violating their merger agreement, and Albertsons has filed a lawsuit against Kroger alleging the retailer knew it was not doing enough, like agreeing to sell stores, to get the merger approved and resolve the FTC's concerns, claims Kroger has denied.

Both companies have also restarted their stock buyback programs after the plans were paused to focus on winning regulatory approval for the merger.

Albertsons shares were up about 2% Wednesday morning.