Anticipating Walmart’s Pre-Bell Earnings Report: What’s in Store?

By Maggie Last updated Feb 20, 2024

Walmart’s Holiday Zone Outlook: A Look at the Future of the Store assesses the direction of retail and the overall market in America.

Here’s a breakdown of Wall Street analyst estimates based on information compiled by LSEG (formerly Refinitiv):

Earnings Per Share: Estimated $1.65
Revenue: Expected to reach $170.71 billion

Wal-Mart’s performance often makes it a model for consumer confidence and business, according to the market and the largest employer in the United States. Upcoming financial reports will kick off major earnings season for the retail industry.

In November, Walmart expected fully adjusted earnings per share to be in the range of $6.40 to $6.48 and growth to be 5% to 5%. Consolidated net sales increased 5.5%. The figures point to a positive outlook in the competitive environment resulting from rising food prices.

According to the National Retail Industry Report, the first indicators point to the fourth quarter for Walmart; holiday sales increased 3.8% year over year to $964.4 billion. But the latest data from the US Department of Commerce showed a decline in consumer spending in January; This may indicate a change in shopping after the holidays.

Despite many financial setbacks, Walmart has managed to manage the situation by relying on its positive results across the revenue spectrum. The company increased its revenue through sales, business expansion and initiatives such as the launch of the Walmart+ subscription program.

Unlike the cost-cutting measures adopted by many of its peers, Walmart has announced plans to open or announce more than 150 stores in the United States over the next five years. In addition, it invests in the development of existing stores and increasing the salary of the store manager; Average annual salary of $128,000 and bonuses are provided by free donations.

The recently announced 3-for-1 stock split, combined with Walmart’s strong results, has boosted investor confidence. But Chairman Doug McMillon warned of possible deflationary pressures in coming years that could impact sales but also hinder spending decisions from customers.

Walmart shares are trading at $170.36, up 8% year to date, outpacing the S&P 500’s 5% gain, and all eyes are on the retailer as it lays the groundwork for the business in the coming months. Adjust the volume.