Ocado share price recorded a steep decline on Tuesday as the firm missed its fourth-quarter sales estimates. As of the time of writing, the OCDO stock price was trading 5.84% lower at 760.8p. The company’s current total market capitalization currently stands at £6.589 billion.

Poor Performance

Ocado share price was in the spotlight earlier on Tuesday amid the release of the company’s fourth-quarter update. Ocado Group Plc was among the worst performers in both the European market and the FTSE 100 index.

According to the report released by the online grocery supermarket on Tuesday, Ocado Retail’s revenue for the full year 2022 slipped. The business, a joint venture between Ocado Group and Marks and Spencer, recorded a 3.8% decline in full-year revenue to £2.2 billion compared to the previous year in the same period.

The company’s sales increased by 0.3% in the fourth quarter to November 27 and were up by 15% over the five days to Christmas. However, the cost of living crisis and the unwind of pandemic shopping behaviors offset the uptick in Christmas sales.

In the report, Ocado Retail stated that basket volumes fell 12.1% as shopping frequency declined. This saw a decline in revenue in the reporting year. Looking ahead into fiscal 2023, the British online supermarket expects to deliver revenue growth in the mid-single digits, followed by a strong recovery in 2024.

Ocado Share Price Outlook

The daily chart shows that the Ocado share price has been struggling to maintain a directional move for the past few days.  Even so, the stock has managed to remain above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is at 58.

Therefore, the Ocado share price is likely to pull back further before a correction. The next support level to watch will be 685p. However, this bearish view will be invalidated if the price flips the resistance at 954p.