You are here

Prices & Quotes - UK Markets - Tesco (TSCO)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 227.50p
Change Today:
1.60p
Market Cap:
17,590m
Sector:
Food & Drug Retailers

Tesco holds dividend but cautious outlook disappoints

By Sean Farrell

Date: Wednesday 14 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Tesco announced an unchanged final dividend but shares of Britain's biggest retailer fell as its cautious outlook statement disappointed investors.
Pretax profit for the year to the end of February fell 20% to 825m from a year earlier as sales excluding fuel rose 7% to 53.4bn. Analysts had expected pretax profit of 891m. Operating profit before exceptional items and amortisation fell 28% to 1.82bn, beating expectations for profit of 1.73bn.

Sales were powered by an 8.8% increase in the UK and Ireland to 48.8bn, more than offsetting a 2% drop in central Europe and a 31% decline at Tesco Bank.

The FTSE 100 group proposed a final dividend of 5.95p per share taking the annual payout to 9.15p - the same as a year earlier. Tesco said the annual dividend was higher than its policy allowed, reflecting its confidence in future cash flows.

Ken Murphy, Tesco's chief executive, said: "Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders. We believe we can create significant further value for them and every stakeholder in our business by continuing to focus on value, loyalty and convenience for customers, underpinned by strong capital discipline."

Tesco said it expected a strong recovery in profitability and free cash flow because most of the extra costs caused by the pandemic will not be repeated. Some extra UK sales will fall away but this will be more than offset by lower costs, the group said.

The company said its best estimate was that retail operating profit would be similar in the current year to 2019/20, before the pandemic affected performance. Tesco said it would maintain capital discipline and return excess cash to shareholders.

Supermarkets' sales boomed during the Covid-19 crisis as households were forced to eat and drink at home. But grocers were also forced to hire extra staff to meet demand and cover sickness as well as spending on protection measures.

Tesco shares fell 3.2% to 224.6p at 08:31 BST as shareholders were underwhelmed by Tesco's cautious outlook statement.

Nicholas Hyett, an analyst at Hargreaves Lansdown, said: "The underlying positives haven't been enough to boost the share price this morning, and we suspect that's due to relatively lacklustre guidance ... suggesting that while the pandemic hasn't done the group much harm, a year of captive shoppers hasn't done it much long term good either.

"We suspect that may turn out to be an overcautious forecast, but as things stand it has clearly left the market disappointed."





Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Tesco Market Data

Currency UK Pounds
Price 227.50p
Change Today 1.60p
52 Week High 247.75p
52 Week Low 202.63p
Volume 13,438,817
Shares Issued 7,732m
Market Cap 17,590m
Beta 0.00

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. full sector star
Price Trend
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Income
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Growth
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
P/E
market
  1. full market star
  2. full market star
  3. full market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
PEG
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
Dividend Yield
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector
EPS Growth
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector

What The Brokers Say

Strong Buy 13
Buy 0
Neutral 2
Sell 1
Strong Sell 0
Total 16
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Tesco Dividends

  Latest Previous
  Final Special
Ex-Div 20-May-21 15-Feb-21
Paid 02-Jul-21 26-Feb-21
Amount 5.95p 50.93p

Trades for 07-May-2021

Time Volume / Share Price
16:36 149,449 @ 227.50p
16:35 5,378,160 @ 227.50p
16:29 2 @ 227.40p
16:29 1 @ 227.40p
16:29 673,419 @ 226.76p

Tesco Key Personnel

Chair John Allan
CEO Ken Murphy