Greggs Share Price Pre-Earnings Preview. Can GRG Soar to 3,000p?

The Greggs share price will be in the spotlight this week as the company publishes its quarterly results. The stock has jumped in the past ten straight months and is hovering at its all-time high. This values the firm at more than 2.8 billion pounds.

Greggs earnings preview

Greggs is a leading food brand in the UK. The company provides breakfast, savories & bakes, drinks & snacks, sandwiches, and other products. It has more than 2,000 stores in the UK. Like all companies, the firm’s business was affected greatly by the pandemic, which pushed its revenue down by more than 30% in 2020. Its annual revenue dropped to more than 833 million pounds in 2020.

Still, the company has done relatively well since then, helped by its multi-channel strategy. This was evidenced by the recent trading update. In May, the company said that its business did well as the UK eased restrictions. It opened 34 new shops in the first 18 weeks and closed 11 underperforming ones. Its total sales in the 18 weeks to May 8 were more than 352 million pounds, up from 280 million pounds in the same period in 2020. This performance was mostly due to its delivery services. 

Therefore, analysts expect that Greggs will report strong results when it publishes them on Tuesday this week. This performance will be because of the reopening. Still, like the firm said in its previous update, forecasting for the remainder of the year will be difficult. They expect that its profits will be higher than what the firm guided before. 

Greggs share price outlook

Greggs share price

On the 1D chart, we see that the GRG share price has been in a strong bullish trend in the past few months. Along the way, it has formed an ascending channel that is shown in blue. The price is between this channel. At the same time, the bullish trend is being supported by the 25-day and 50-day moving averages. 

Therefore, I suspect that the stock will maintain the bullish trend after the company publishes its results. If this works, the next key level to watch will be the resistance at 3,000p. On the flip side, a drop below 2,495p will invalidate the bullish view.