Tesco share price has surged for the second straight day after the company’s year-end profits jumped. According to the earnings statement, sales grew as the company benefitted from the lockdowns that altered the shopping habits of UK consumers.
Profits grew from 971 million GBP (0.099 pounds per share) in the fiscal year of 2020, to 6.14 billion GBP (0.64 pounds per share) at the end of the 2021 fiscal year. Sales also rose 7.1%, with total sales in its largest market (UK and Ireland) also rising nearly 9%.
The company also captured a significant chunk of market share from its peers, with a strong sales performance in the second half of 2020 as lockdowns tightened during the Christmas period. However, the company expects a drop is sales volumes as lockdowns are eased in the UK.
Tesco share price has ended the day 1.14% higher.
Technical Levels to Watch
Tesco share price has had two days of solid gains in response to the stellar earnings report. The active daily candle is now testing the resistance at 234.25. A break above this level targets the 236.00 psychological resistance, with an uncapping of that level allowing Tesco share price to attempt a push towards 2-month highs at 239.70.
On the other hand, a rejection at 234.25 allows for a potential pullback, which targets 231.90 initially. A further decline from profit-taking allows the stock to push for the 228.0 psychological support, with 224.0 and 220.20 lining up as additional targets to the south.