Justin Sullivan
Walmart (NYSE:WMT) will release holiday quarter earnings on Tuesday.
The retail giant is expected to report revenue of $158.6B and EPS of $1.51. Comparable sales are forecast to grow 4.9% in the quarter after excluding fuel sales. Grocery Business is expected to be strong again, with Walmart’s “Low Daily Prices” strategy resulting in a trade-off for consumers. Notably, 10 of the 14 most recent earnings revisions from analysts are all trending up. Options trading implies a 5% move after the report drops. WMT shares jumped 6.5% following the Bentonville company’s final earnings report.
During the conference call, an update from Walmart (WMT) on inventory issues, shipping costs, supplier relationships and supply chain challenges will be key. Overall, analysts expect a cautious tone from the retailer given the competitive environment and difficult macroeconomic backdrop.
Before the Walmart print, Evercore ISI added Walmart (WMT) to its list of the best tactical trading ideas in its view, earnings results will beat expectations and the drop in the full-year forecast could have been reflected in the stock’s performance. The company sees tough inflation in the grocery industry boosting demand for WMT’s value product. “We believe management is likely to steer CY23 below the consensus outlook of $6.54, potentially in the $6.10-6.30 range, with a margin of around 3%. ,” said analyst Greg Melich.
When Searching for Alpha, Pendulum of value gave a Buy on Walmart recommendation (WMT). WMT is expected to benefit from lower costs related to product and shipping costs in the recent quarter, as well as gain market share as competitors charge relatively higher prices. by Walmart (WMT) earnings reports will be of high interest in the retail sector (XRT) with our earnings reports due over the next two weeks. Some notable names to follow after the Walmart print include Amazon (AMZN), Target (TGT), common dollar (FIRE), Dollar tree (DLTR), Costco (VALUE), Best Buy (BBY), Kroger (KR) and Macy’s (m).
