What You Need To Know Ahead of Walmart Earnings
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Key TakeawaysWalmart reports earnings ahead of Thursday's open, with analysts expecting the retailer to be a bright spot in the retail landscape as consumers focus on value. The retail giant's fiscal first-quarter results in May led the company to lift its full-year outlook, and JPMorgan analysts called Walmart "one of the few" retailers capable of beating estimates and lifting its outlook again in the latest quarter.Walmart said in its first-quarter report that most of its market-share gains came from higher-income consumers.
Walmart (WMT) is set to report earnings Thursday morning, with analysts expecting sales to rise year-over-year after the retail giant's fiscal first-quarter results led the company to lift its full-year outlook.Analysts expect a year-over-year bump of about 4% in sales, to $168.53 billion, according to estimates compiled by Visible Alpha. Net profit is projected at $5.19 billion, or 65 cents per share, compared with $7.89 billion, or 97 cents per share a year earlier – or 61 cents per share after the effect of unrealized investment gains that boosted the year-ago results is removed.
Analyst Estimates for Q2 2025
Q1 2025
Q2 2024
Revenue
$168.53 billion
$161.51 billion
$161.63 billion
Diluted EPS
65 cents
63 cents
97 cents
Net Income
$5.19 billion
$5.1 billion
$7.89 billion
Key Metric: Market ShareIn its first-quarter earnings call in May, Walmart executives said the company was gaining market share across several income levels. Low-income consumers continued to be drawn to Walmart for its focus on value, while higher-income shoppers were drawn by a combination of price and increasing levels of convenience, company leadership said.The increased share of higher-income customers has come at the expense of retail competitors like Target (TGT), which reported a drop in same-store sales compared with the same time last year in its first-quarter report.Bank of America Securities analysts said they project Walmart will continue to gain market share across different income levels of consumers in the latest quarter thanks to its "strong value offering" and growing digital and automation efforts.Business Spotlight: Position Among Retail LandscapeAnalysts are optimistic about Walmart's position in comparison with other retailers, given its dominant position as a value-centric retailer as consumers pressured by inflation have pulled back on discretionary spending and sought the lowest-cost option for essentials.JPMorgan analysts called Walmart a "safe-haven stock" in a recent note, saying the company is "likely one of the few" retailers positioned to beat analyst estimates and raise its guidance on earnings outlook for the rest of the year.Deutsche Bank analysts wrote recently that they expect Walmart's earnings to help the retailer continue "distinguishing itself from the rest of retail with continued momentum—albeit with some moderation—amidst a slowing consumer backdrop."Walmart shares rose more than 1% Monday, leaving the stock up more than 30% in 2024 and not far off record highs set earlier this year. They were off about 1% in early Tuesday trading. Read the original article on Investopedia.
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