Walmart (WMT) Reports Earnings Tomorrow. What To Expect
Retail behemoth Walmart (NYSE:WMT) will be reporting earnings tomorrow morning. Here's what to expect.
Last quarter Walmart reported revenues of $161.6 billion, up 5.7% year on year, beating analyst revenue expectations by 1.6%. It was a strong quarter for the company, with a solid beat of analysts' same-store sales, total revenue, and adjusted EPS estimates. Guidance was more mixed. The outlook for next quarter's revenue is roughly in line with expectations, although the outlook for adjusted EPS was slightly below. For the full year outlook, revenue was guided slightly below although adjusted EPS was guided above expectations.
Is Walmart buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Walmart's revenue to grow 3.7% year on year to $158.5 billion, slowing down from the 8.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.52 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing seven upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.9%.
Looking at Walmart's peers in the non-discretionary retail segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Grocery Outlet delivered top-line growth of 9.3% year on year, missing analyst estimates by 0.4% and Sprouts reported revenues up 7.7% year on year, exceeding estimates by 2%. Grocery Outlet traded down 7.1% on the results, Sprouts was up 1.5%.
Read our full analysis of Grocery Outlet's results here and Sprouts's results here.
Investors in the non-discretionary retail segment have had steady hands going into the earnings, with the stocks up on average 1.3% over the last month. Walmart is up 3.8% during the same time, and is heading into the earnings with analyst price target of $179.3, compared to share price of $167.5.
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The author has no position in any of the stocks mentioned.
