Key Findings
The AI model forecasts Q3 EPS of $0.57 versus the Street's $0.67, with revenue at $19.02B slightly below consensus. This represents one of GPT's most contrarian calls in the grocery sector this quarter.
Thesis
GPT's bear case rests on the observation that 'the underlying run-rate points to a stable-topline but margin-constrained quarter.' The model specifically flags promotional intensity and shrink as factors limiting gross margin recovery, noting that last year's Q3 had an 'unusually low tax rate' that won't repeat. The AI is essentially calling out that consensus is anchoring too heavily to prior-year comparisons.
What This Means
This forecast highlights how AI models can identify margin pressure in defensive sectors. With 56% confidence, GPT is flagging that ACI's revenue stability masks underlying profitability challenges. Investors should watch gross margin trends and promotional activity during the quarter.