Stocks: Marks & Spencer Stock Up 0.5%; Earnings Beat Analyst Consensus

Marks & Spencer reported higher profit but lower sales number, the UK retail giant has some serious challenges to face

Marks & Spencer Group Plc’s price surged by 0.5 percent as the FTSE 100 index advanced. The firm has reported higher profits but lower sales than the estimates. M&S reported profit of 11 pence a share on a comparable basis for the latest period, slightly above the estimate of 10 pence. The sales revenue came in at 49.7 million pounds, versus the 50.8 million pounds estimate.

The shares increased to 304 pence from 302.50p. Looking at the trading volume, it was 8.5 times the 20-day average which shows higher market interest. In terms of its stock performance over the pas month, it has surged 7.2 percent and this is much better if you compare the company peer which stands at 0.4%. It returned less than 1 percent so far this year and a loss of 1.2 percent in the past 52 weeks.

Most analyst consensus rating is equivalent to sell. Marks & Spencer trades at 11.0 times trailing 12-month earnings per share and 12 times its estimates for the coming year.

In terms of technical analysis, the price of M&S has a huge trading rage today. The 30-minute chart shows that the price range is nearly from £316 to 287 pence. This kind of action does take place on a occasional basis when the earnings are due. Nonetheless, the price is above 50 and 100-day moving averages and this confirms the bullish trend.

The support zone is shown by the green horizontal line

The resistance zone is shown by the red horizontal line