Albertsons Companies, Inc. (ACI) saw its stock price plummet 5.33% in pre-market trading on Tuesday, following the release of its fourth-quarter results and disappointing annual profit forecast. Despite beating expectations for the fourth quarter, the grocery chain's outlook for the coming year has raised concerns among investors.

The company reported strong Q4 results, with adjusted earnings per share of $0.46, surpassing the IBES estimate of $0.40. Revenue for the quarter came in at $18.8 billion, slightly above the expected $18.785 billion. However, Albertsons' forecast for the fiscal year ahead has overshadowed these positive figures. The grocery chain expects annual profit between $2.03 and $2.16 per share, falling short of analysts' estimates of $2.28 per share, according to data compiled by LSEG.

Albertsons' cautious outlook reflects broader concerns in the retail sector, as American consumers become increasingly wary due to persistent high inflation and macroeconomic uncertainty. The company projects identical sales growth of 1.5% to 2.5% for the fiscal year, indicating a challenging environment ahead. This conservative forecast, combined with the ongoing legal battle with rival Kroger over their failed $25-billion merger, has likely contributed to the negative sentiment surrounding Albertsons' stock. As the market digests this information, investors will be closely watching how Albertsons navigates these headwinds in the coming months.