Sainsbury’s share price in positive territory ahead of Q4 update

on Mar 13, 2015
Updated: Oct 21, 2019

J Sainsbury’s (LON:SBRY) share price has been trading higher ahead of the group’s quarterly trading update next week. On Tuesday, the UK’s fourth-largest supermarket chain is due to publish its figures for the final three months of its financial year.

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In January, Sainsbury’s reported a better-than-expected 1.7 percent year-on-year decline in underlying sales in its third quarter. The performance also marked an improvement on the previous quarter, when like-for-like sales excluding fuel fell 2.8 percent. However, the FTSE 100 grocer warned at the time of the announcement, the outlook for the rest of the financial year would “remain challenging”.
According to IG, the prospects for Sainsbury’s full-year results still look weak with adjusted earnings per share expected to drop from £0.328 down to £0.264. Sales are forecast to rise to £24.085 billion from £23.949 billion the year before. Profit margins have continued to shrink and pre-tax profits are set to fall to £661.556 million from £898 million.
Barclays analysts have sounded a note of caution on Sainsbury’s ahead of its fourth-quarter trading statement, with Kantar Worldpanel’s latest industry data indicating the group has continued to lose ground in recent months. The market researcher said on Tuesday that in the 12 weeks to March 1, Sainsbury’s sales had declined 0.5 percent, while its market share had fallen to 16.8 percent from 17 percent a year ago. Barclays’ analysts believe, however, that the retailer is likely to benefit from falling fuel prices.
Sainsbury’s share price has been trading in positive territory today, gaining as much as 0.7 percent soon after the opening bell. According to the Financial Times, of the 19 analysts projecting 12 month price targets for Sainsbury’s, the median target is 235.00p, with a high estimate of 330.00p and a low of 155.00p. As of 1 March 2015, the consensus forecast amongst 31 polled investment analysts covering the supermarket group has it that investors should hold their position in the company.
As of 10:04 GMT, Friday, 13 March, J Sainsbury plc share price is 263.70p.


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