Shares of FTSE 100-listed Tesco PLC (GB:TSCO) surged over 3% as of writing after the company increased its retail adjusted operating profit guidance to £2.9 billion for Fiscal 2024/25 from the previous expectation of at least £2.8 billion. This upgrade was mainly driven by the company’s strong performance in the first half of FY24/25, highlighting profit and revenue growth.
Tesco is one of the top retailers in the UK, providing a diverse selection of groceries and everyday goods.
Tesco Delivers Impressive H1 Results
Tesco delivered impressive results, with a statutory pre-tax profit of £1.392 billion from continuing operations in H1. This reflected an increase of nearly 20% compared to £1.161 billion during the same period a year ago. The profit growth was largely fueled by a 3.3% rise in revenue on a constant currency basis to £34.77 billion.
Meanwhile, Tesco posted a 13% year-over-year rise in its statutory operating profit to £1.61 billion.
Speaking of shareholders’ returns, Tesco announced an interim dividend of 4.25p per share. It marked an increase of 10.4% over the interim payment in the previous fiscal year.
Jefferies Weighs in on Tesco’s Results
Analysts at Jefferies noted that Tesco’s H1 results indicate a company thriving in the evolving UK landscape. Additionally, Jefferies praised Tesco’s impressive performance in various sectors, including its solid grocery sales in the UK and enhanced international operations.
On the other hand, analysts at Jefferies also believe that investors were anticipating a more significant increase in the company’s guidance, considering its robust performance.
Is Tesco Share a Good Buy?
On TipRanks, TSCO stock has received a Moderate Buy rating backed by seven Buys, one Hold, and one Sell recommendation. The Tesco share price forecast is 376p, which is 2.2% higher than the current trading level.
