The Tesco (LSE:TSCO) share price took a bit of a tumble last Friday, falling by 4% after it published its first-quarter results. This brought the stock’s 12-month performance to around -2% (taking its share consolidation into account), so it remains almost flat. But were these results as bad as the market suggests? Let’s take a look at the numbers, and see whether this is actually a buying opportunity.
The Tesco share price versus earnings
At first glance, Tesco’s latest earnings report looks quite underwhelming. After all, revenues for the period grew by a measly 1% (excluding fuel sales). But looking at the individual revenue streams, there are some encouraging signs of improvement.
Firstly, its Booker division saw a 68.1% increase in like-for-like catering sales that increased its overall revenue by 9.2%. This growth is clearly benefiting from the return of the hospitality sector as lockdown restrictions have enabled pubs and restaurants to reopen.
Meanwhile, sales from its supermarkets have also performed relatively well. Comparing to a year ago, growth remains paltry at…
