Tesco (LON:TSCO) Issues Quarterly Earnings Results

Tesco (LON:TSCO) posted its earnings results on Thursday. The retailer reported GBX 29.50 earnings per share for the quarter, Digital Look Earnings reports. The company had revenue of GBX 7,371 million during the quarter. Tesco had a return on equity of 13.57% and a net margin of 2.14%.

Here are the key takeaways from Tesco’s conference call:

• Customer metrics improved materially — Tesco reported its highest market share in a decade (UK 28.5%) and rising Net Promoter Scores, which management says drove sustained volume growth and helped deliver results ahead of expectations.
• Strong financial delivery: group adjusted operating profit of £3.15 billion, headline EPS up 6%, free cash flow of £1.96 billion (12% y/y), an upgraded medium‑term FCF target of £1.5–2.0 billion, and a new £750 million share buyback (total returns this year £2.4bn).
• Management is evolving strategy into five ambitions focused on winning in food and building capital‑light growth engines — investments in AI/digital (dunnhumby), retail media, Whoosh (now >£400m sales) and Marketplace are highlighted as future revenue and margin drivers.
• Risk and uncertainty remain: management flagged sustained competitive intensity and the Middle East conflict as reasons for a wider FY guidance range (group adjusted operating profit guidance of £3.0–3.3 billion) and warned these factors could pressure costs or consumer demand.

Tesco Price Performance

TSCO stock opened at GBX 488.75 on Thursday. The company has a debt-to-equity ratio of 138.46, a quick ratio of 0.60 and a current ratio of 0.60. Tesco has a 52-week low of GBX 343.60 and a 52-week high of GBX 508.20. The company has a market capitalization of £31.06 billion, a P/E ratio of 21.53, a PEG ratio of 1.43 and a beta of 0.61. The company has a fifty day moving average price of GBX 476.61 and a 200-day moving average price of GBX 454.73.

Wall Street Analyst Weigh In

TSCO has been the topic of a number of recent research reports. Shore Capital Group reaffirmed a “buy” rating on shares of Tesco in a research report on Thursday. JPMorgan Chase & Co. dropped their price objective on Tesco from GBX 500 to GBX 480 and set a “buy” rating for the company in a research report on Monday, January 12th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Tesco from GBX 500 to GBX 490 and set a “buy” rating on the stock in a report on Thursday, January 8th. Finally, Jefferies Financial Group restated a “hold” rating and issued a GBX 430 target price on shares of Tesco in a research report on Thursday. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of GBX 465.

About Tesco

Tesco was built to be a champion for customers, serving them every day with affordable, healthy and sustainable food. Our commitment to our customers extends beyond our stores, and into every community we serve – in the UK, Republic of Ireland, Slovakia, the Czech Republic and Hungary. We invest in communities to help them thrive, through supporting schools and children’s groups, food banks and other good causes.

In challenging times, our purpose has guided every part of the Group. Serving our customers, communities and planet a little better every day is what we do.