Walmart expected to report higher earnings and revenue for fiscal third-quarter
Walmart will report its fiscal third-quarter earnings on Thursday, with investors anticipating the retailer’s earnings and revenue to be higher year over year. The discounter has fared better than other retailers, largely due to its low-price reputation and big grocery business.
According to consensus estimates from LSEG, formerly known as Refinitiv, Wall Street expects Walmart to report earnings per share of $1.52, with revenue expected to reach $159.72 billion.
As the holiday season approaches, investors have high hopes for Walmart, betting that the big-box retailer has what it takes to drive sales, even as shoppers become more discerning. Walmart’s status as the nation’s largest grocer helps drive steadier foot traffic, a significant advantage for the retailer.
In addition to its physical stores, Walmart has also invested in its e-commerce business, expanding its assortment through its third-party marketplace. The company has also found success in new revenue streams, such as selling ads and annual memberships to Walmart+, its answer to Amazon Prime.
Shares of Walmart reached an all-time high on Wednesday, closing at nearly $170, up about 19% for the year. The stock’s performance was boosted by strong results from Target, which could bode well for Walmart’s quarter. Walmart has outperformed Target over the past year, relying on its grocery sales and reputation for low prices.
Despite its strong performance, some analysts are cautious about Walmart’s upcoming earnings report. Michael Baker, a retail analyst for D.A. Davidson, noted that while Walmart has taken market share by carrying a heavier mix of basics and building a reputation for value, there is a concern that expectations may have gotten too high.
Walmart’s third-quarter earnings report is eagerly anticipated by investors, with hopes that the retailer will continue its streak of outperforming its rivals.