Why Tesco's Shares Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of energy supplier Tesco jumped as much as 20% in early trading today after the company released earnings.
So what: Second-quarter revenue rose slightly to $129 million and net income rose 16% to $10.2 million, or $0.26 per share. Analysts were only expecting $0.19 per share in earnings so the growth easily beat Wall Street's best guess.
Now what: Slow North American demand continues to be a drag but the company is turning its focus to the international market where it's seeing success. I wouldn't expect strong growth over the next few quarters, but steady results should leave investors with a decent value right now. Shares trade at 13 times earnings and, with the bottom line improving, it's a good time to buy into an industry that should see growth in demand as energy prices rise.
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The article Why Tesco's Shares Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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