First quarter results from Tesco PLC (LSE:TSCO) on Friday will still be dominated by inflation, at least on the top line, according to analysts at Shore Capital.
Analysts expect the report to feature commentary on lower volumes, cost control and cash management.
“The Tesco investment thesis is a good one to us, a cash compounder with strong income credentials, capital discipline and allocation,” Shore Capital said.
Tesco reported full-year revenue and operating profit at the top end of City forecasts when it released results in April.
Revenue in the year to 25 February 2023 grew 7% to £65.7bn, while profits totalled £2.63bn, down from £2.8bn in the comparative period.
However, it did warn that for the upcoming year, profits will remain flat.
Shares in Tesco are up 13% in the year-to-date to 259p.