Tesco (full-year earnings 12 April)
Expectations are for underlying earnings to hit £1.25 billion, a slight upgrade to the firm’s previous forecast of £1.2 billion. The Booker takeover means that Dave Lewis has to show that the supermarket’s turnaround is well-advanced and also display well thought-out plans for the incorporation of the Booker operations. Sales momentum needs to be maintained, to avoid giving the impression that Tesco has moved on Booker in order to make itself look better, and to cover a stall in the rate of recovery. Still, with 28% of the market versus 16% for rival Sainsbury's, Tesco remains well-positioned overall.
The company’s shares have steadily lost ground since peaking just shy of 220p in December 2016. Rallies have been firmly sold since then, and we remain stuck in a downtrend. The recent low of 182p provides a key support level, and if this is broken then 160p and lower could come into play. A rally must post a close above 200p to indicate firm bullish momentum.