Tesco (LON:TSCO) is expected to report a double-digit rise in profits when it updates investors on its interim performance this week, The Telegraph reports. The comments come ahead of the supermarket’s half-year results on Wednesday.
Tesco’s share price fell on Friday, giving up 0.75 percent to close at 239.80p, underperforming the broader UK market, with the benchmark FTSE 100 index ending the session 0.47 percent lower at 7,510.20 points. The group’s shares have added more than 28 percent to their value over the past year, as compared with a near two-percent rise in the Footsie.
Tesco to report rise in profits
Tesco is scheduled to post its interim results on Wednesday, and The Telegraph reports that analysts are expecting operating profit to have climbed 13 percent to £1 billion for the half year, with the royal wedding, the World Cup and summer heatwave having boosted sales. The results will also be boosted by Booker, whose performance will be included in the FTSE 100 group’s results for the first time since the deal earlier this year.
The interim update will come after the latest Kantar data showed that sales at Britain’s biggest grocer had grown 1.9 percent in the 12 weeks ended September 9. The company also recently launched its discount chain Jack’s as it looks to take on German rivals Aldi and Lidl.
Analyst ratings update
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 277.50p on the shares, with a high estimate of 300.00p and a low estimate of 200.00p. As of September 28, the consensus forecast amongst 21 polled investment analysts covering the blue-chip grocer has it that the company will outperform the market.