Tesco share price was trading higher on Thursday off the back of better-than-expected preliminary results for 2022/2023. At the time of writing, the TSCO stock was trading 2.54% higher at 274p. The British retailer has been among the best-performing stocks in the sector, climbing more than 21% in the year to date. The company’s total market capitalization currently stands at £19.43 billion.
Tesco share price was in the limelight earlier on Thursday as investors chewed on the company’s latest preliminary results. Tesco Group Plc announced a strong financial performance with retail free cash flow, beating analysts’ expectations.
The British retail group reported strong sales performance across the Group, with the Group retail sales jumping 5.3% compared to the previous year, despite pressure from the cost of living crisis. Statutory revenue increased by 7.2% including fuel sales up 23.3%. The company’s total adjusted operating profit fell 6.3% at constant rates, while its net debt inched slightly lower by 0.2%. Even so, the company recorded a strong retail free cash flow of £2,133 million.
In his statement, Tesco’s chief executive stated that;
“We are pleased with our strong performance in 2022/23 and confident that we have the right strategy to keep winning. We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023/24 and retail free cash flow within our target range of £1.4bn to £1.8bn. We expect Bank adjusted operating profit of between £130m and £160m.”
The UK economy flatlined in February amid high inflation and widespread industrial action. Data released on Thursday showed a steady GDP, missing analysts’ estimations of a 0.1% growth. Falls in services and production were offset by growth in construction.
Tesco Share Price Outlook
Tesco share price has been trading higher for the past few days, forming an ascending channel along the way. The stock has remained above the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) has moved higher into the overbought zone.
Therefore, with the latest data suggesting impressive performance, the Tesco share price is likely to continue ticking higher. If this happens, buyers will be targeting the next resistance level at 280p. On the flip side, a move below the key support level at 264.5p will invalidate this view.