Connect with us

Hi, what are you looking for?


Tesco profits 2023: a reason to sell stock?

Shares of Tesco PLC (LON: TSCO) ended in the green on Thursday even though the retail giant said its pre-tax profit halved in fiscal 2023.

Shore Capital recommends buying Tesco shares

The stock remained resilient primarily because the supermarket issued better-than-expected guidance for the future. Tesco expects its retail adjusted operating profit to remain flat this year at about £2.49 billion ($3.11 billion).

Its outlook was sufficient for a Shore Capital analyst to reiterate his “buy” rating on Tesco PLC. Clive Black dubbed the British multinational an “effective cash compounder” and recommended buying its shares for about an 8.0% free cash flow yield.

Other reasons cited for the bullish view despite weakness in Tesco profits 2023 include the company’s capital discipline and recurring buybacks. On Thursday, the retailer said it will repurchase £750 million worth of is shares over the next twelve months.

Notable figures in Tesco profits 2023 report

Profit before tax tanked from £2.03 billion to £1.0 billion

Revenue including fuel climbed 7.0% YoY to £65.76 billion

Retail like-for-like sales went up 5.1% in financial 2023

Adjusted operating profit slipped 7.0% to £2.63 billion

Tesco PLC declared 7.05 pence per share of financial dividend on Thursday. In the press release, CEO Ken Murphy said:

We have repositioned our value proposition. Our focus on market share and free cash flow is working. By investing to give customers the best possible value, we’ll create further significant value for every stakeholder in Tesco.

Year-to-date, Tesco shares are up nearly 20%.

The post Tesco profits 2023: a reason to sell stock? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    As the United States continues to grapple with the ongoing immigration crisis, the House and Senate have found themselves at odds over how to...

    Latest News

    As the world continues to grapple with the COVID-19 pandemic, the global economy is facing unprecedented challenges. In the United States, President Joe Biden...

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 All Rights Reserved.