Morrisons share price: Group expected to post best results in six years

on Mar 6, 2017
Updated: Oct 21, 2019

Recover is expected to have continued at Wm Morrison Supermarkets (LON:MRW), with the company forecast to report its best annual results in six years this week. The blue-chip supermarket is further expected to announce plans to strengthen ties with US e-commerce giant Amazon.

Morrisons’ share price has advanced in London this morning, having added 0.82 percent to 245.60p as of 10:11 GMT, outperforming the blue-chip FTSE 100 index which has slipped into the red and is currently 0.37 percent worse off at 7,346.85 points. The group’s shares have gained more than 17 percent over the past year, and are up by some six percent in the year-to-date.
Morrisons is scheduled to post its preliminary results on Thursday and City A.M. reports that Jefferies expects that the supermarket chain will report a 54-percent rise in pre-tax earnings to £335 million, marking its best annual performance in six years. The grocer is also expected to unveil like-for-like sales growth of 1.5 percent.

The results are expected to show that the turnaround under chief executive David Potts is continuing. Potts, who took the reins two years ago, has been cutting costs across the chain. He has also agreed a wholesale deal with Amazon, allowing Amazon Prime Now and Amazon Pantry customers access to the UK grocer’s products.
The Telegraph reports that Morrisons is also expected to strengthen ties with the US e-commerce giant, saying that the bright yellow lockers, which allow shoppers to pick up deliveries from Amazon, will now be installed in 400 Morrisons shops.
The 16 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 210.00p, with a high estimate of 260.00p and a low estimate of 165.00p. As of March 4, the consensus forecast amongst 20 polled investment analysts covering the blue-chip grocer has it that the company will underperform the market.
As of 10:46 GMT, Monday, 06 March, Wm. Morrison Supermarkets plc share price is 245.47p.

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