Sainsbury’s Share Price Gains as Earnings Loom: Here’s What to Expect

Sainsbury’s (LON: SBRY) is set to report its full-year 2024/25 results on 17 April, with analysts forecasting a solid performance from the UK’s second-largest supermarket.

Shore Capital expects Sainsbury's (a house stock) profit before tax (PBT) and earnings per share (EPS) to come in broadly in line with consensus, projecting another strong year for the group’s grocery business. 

Meanwhile, the Sainsbury compiled analyst consensus sees retail operating profit at £1.032 billion, underlying PBT at £751 million, a dividend of 13.5p, and EPS of 22.4p.

Sainsbury’s grocery division continues to perform well, with like-for-like sales growth, improved operating margins, and further market share gains. However, the question may be whether the macroeconomic uncertainty will weigh on the company’s outlook. 

“The value proposition has been structurally strengthened, store operations are good, and so in addition to decent volume growth, grocery market share has been sustainably gained, volume based,” wrote Shore Capital.

The retailer is also expanding its food footprint within its existing estate, converting 13 former Homebase sites, including a recent addition in Dumfries. 

These conversions are expected to bolster operating profit in the second half of FY26, with full contribution from FY27.

Shore Capital believes Sainsbury’s stock is undervalued, citing its stable financial position, attractive dividend stream, and strong free cash flow yield.

Looking ahead, rising food inflation—currently estimated at 2.5–3.0%—could climb above 5% in 2026 due to increased labour and environmental compliance costs. 

Despite this, Shore Capital remains optimistic about Sainsbury’s prospects, forecasting continued progress across the business.

Sainsbury's share price has lost 16.40% on a YTD basis leading into the print, although recent trading sessions suggest some buyers may be willing to step in at the upper 220-230p range. With SBRY having come off 52 week lows at 226p, the shares are up a little over 1% today in early trading.