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Sainsbury’s share price surges ahead of interim results

Shares in J Sainsbury (LON:SBRY) have advanced in today’s session, outperforming the broader market rally, as the blue-chip supermarket prepares to update investors on its interim performance tomorrow. The update will come after FTSE 100 peer Morrisons (LON:MRW) posted its third-quarter update earlier this week.

As of 14:37 GMT, Sainsbury’s share price had added 1.53 percent to 317.80p, outperforming the benchmark FTSE100 index which currently stands 1.20 percent higher at 7,124.94 points. The group’s shares have added just under 38 percent to their value over the past year, as compared with about a five-percent fall in the Footsie.

Sainsbury’s results preview

Chris Beauchamp, market analyst at IG, has said in a note that Sainsbury’s expected to report a 17.4-percent rise in earnings, to 9.7p per share, when it updates investors on its interim performance tomorrow, while the group’s revenue is expected to have inched up 1.1 percent to £14.8 billion.

The analyst notes that while Sainsbury’s share price moves 5.8-percent on results day on average, current options pricing indicates a move of 4.13 percent.

The results will come after Kantar Worldpanel recently reported that Sainsbury’s UK grocery sales had grown 0.6 percent in the 12 weeks to October 7, achieving a market share of 15.4 percent, down 0.4 percentage points compared to last year.

Asda merger in focus

Proactive Investors meanwhile quoted Hargreaves Lansdown equity analyst Sophie Lund-Yates as commenting in a preview of Sainsbury’s numbers that the main event was the group’s proposed merger with Walmart’s Asda.

“But,” the analyst said, “while it’s waiting for the thumbs up from regulators, we’re unlikely to hear much on this front. However, we’ll still be on the look-out for any details on what would become the UK’s largest food retailer.”

As of 14:53 GMT, Wednesday, 07 November, J Sainsbury plc share price is 316.60p.

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