Walmart is set to unveil its quarterly earnings on Thursday, and analysts are optimistic, given the retailer’s historical tendency to outperform its competitors. According to consensus estimates from LSEG (formerly Refinitiv), Wall Street anticipates the following figures:
- Earnings per share: $1.52 expected
- Revenue: $159.72 billion expected
With the holiday season approaching, investors are confident that Walmart, as the nation’s largest grocer, is well-positioned to drive sales, even in a market where consumers are becoming more discerning. The company’s dominance in the grocery sector contributes to consistent foot traffic.
Walmart has strategically invested in its e-commerce sector by expanding its product offerings through its third-party marketplace. Additionally, the company has diversified its revenue streams by capitalizing on new avenues, such as selling advertisements and annual memberships for Walmart+, a service comparable to Amazon Prime.
On Wednesday, Walmart’s stock reached an all-time high, dating back to its debut on the New York Stock Exchange in August 1972. Closing at nearly $170, the stock has seen a 19% increase over the course of the year.
The positive performance of Target also played a role in boosting Walmart’s stock on Wednesday, indicating a potentially favorable outcome for Walmart’s quarterly report. Although Target experienced a decline in year-over-year sales, it surpassed Wall Street’s expectations for both earnings and revenue.
Walmart has consistently outpaced Target in the past year, relying on strong grocery sales and a reputation for offering competitive prices. Michael Baker, a retail analyst for D.A. Davidson, acknowledged Walmart’s success in capturing market share by strategically emphasizing a mix of essential products and establishing a reputation for value.
However, Baker cautioned that there might be some risk as Walmart prepares to release its earnings, posing the question, “Have expectations become overly optimistic?”
