Share price breakout for Mr Price after interim trading statement
In this article we highlight recent 1h22 earnings guidance from Mr Price and highlight a short term price breakout which has followed.
Mr Price Group share price: Interim trading statement
The Mr Price Group Ltd trading statement for the first half of 2022, is in part flattered due to a low base of comparison. The comparative interim period saw trading for the clothing and apparel retail sector practically halted through the month of April 2020 as the country endured its first hard lockdown as a result of the initial phase of the pandemic.
The reporting period (six months ended 2 October 2021) was however not without its own disruption as civil unrest from the 14th to the 21st of July resulted in the looting of around 111 of the group’s stores. The group has however received its first (SASRIA) insurance payment post the reporting period, and due to ongoing business interruptions from the past unrest, expects to receive further payments in lieu.
Mr Price has guided the following with regards to the upcoming interim (1H22) results:
Basic earnings per share to have increased by between 45% and 55%
Headline earnings per share to have increased by between 30% and 40%
Normalized headline earnings per share to have increased by between 40% and 50%
The normalized headline earnings per share figure excludes the losses on stock, assets and cash amounting from the civil unrest in July this year.
When are the Mr Price 1H22 (Interim) results?
The actual results are scheduled for release at 9am on the 25th of November 2021.
Mr Price Group: technical analysis
The share price of Mr Price is currently breaking out of the short term consolidation highlighted between the dotted trend lines on our chart. The upside breakout has left a small price gap, alluding to the strong short term upward momentum currently in play.
Should today’s breakout hold into close, 22670 becomes the next upside resistance target from the move. Traders who are long might use a close below gap support at 20620 as a stop loss indication for the trade.
In Summary:
Basic earnings per share are expected to have increased by between 45% and 55%
Normalized headline earnings per share are expected to have increased by between 40% and 50%
The actual Mr Price interim results are scheduled for release on the 25th of November 2021
The results find a low base of comparison due to last years trade restrictions under a hard lockdown
The current period results will also see disruption due to civil unrest in July this year
A price chart highlight a short term upside breakout
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
