Major Earnings for Tesco Causes Stock to Shoot Up
Tesco (TSCO) is the largest grocery retailer in the United Kingdom, and their recent quarterly earnings report showed that they are staying on top with a 3.6% increase over the previous quarter.
Tesco stock climbed 3.32% today after a positive earnings report was released. The company earned £14.33 billion in revenue for the quarter, which sets them up nicely for a strong period of trading. The company’s finest range of goods is up as well, gaining 12.5% over the previous quarter.
Tesco sells more than food, but its food sector gained 5% for the quarter, and the company is doing well across most areas, showing signs of growth in a highly competitive market.
The company is extremely pleased with the report, with chief executive Ken Murphy saying that the company has made great progress and he is very happy with what they have accomplished this quarter. He said that the company has worked hard to stay competitive in areas of brand perception, quality of products, and customer service. Their efforts have paid off, with many customers switching to them from their competitors.
Where Will This Stock Go?
Tesco could continue to gain market share in the current economic environment, and they are certainly committed to doing that. It will not be easy for them to grow even further through the next quarter and beat this quarter’s earnings, but it is possible.
We should see at least more short term gains for the stock as the company rides the success for these very positive numbers. Whether it is a stock for future growth is another matter, but it does look like the company is dedicated to keeping its stock high and trying to stand out in a crowded market.
Investors just looking to jump onboard with Tesco stock may want to wait until it dips a bit and then expect some gains for the next quarter when that report comes in.
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