Walmart, a discount retailer that typically outperforms its competitors, will release its quarterly earnings on Thursday.
Based on consensus estimates from LSEG, formerly Refinitiv, here’s what Wall Street anticipates from the retailer:
- Expected earnings per share: $1.52
- Expected revenue: $159.72 billion
Investors have bet that the big-box retailer has what it takes to boost sales as the holidays draw near, despite consumers becoming more discriminating. Being the biggest grocer in the country helps attract consistent foot traffic.
Walmart has increased its selection through its third-party marketplace as an investment in its online business. It is also generating revenue from more recent ventures, like selling annual memberships to Walmart+—its rival to Amazon Prime—and advertisements.
On Wednesday, the company’s shares reached an all-time high that dates back to August 1972, the month that Walmart made its New York Stock Exchange debut. Wednesday’s closing price of almost $170 represents a 19% annual gain for the stock.
Walmart’s stock increased on Wednesday due to Target’s performance, which may be positive for the company’s upcoming quarter. Although Target’s revenue and earnings exceeded Wall Street’s projections, the company’s sales decreased year over year.
Over the past year, Walmart has outperformed Target thanks to its reputation for low prices and strong grocery sales.
Walmart has gained market share, according to Michael Baker, a retail analyst with D.A. Davidson, because it has found a balance between offering a greater selection of basics and developing a solid reputation for value.
But as it reports earnings once more, he continued, it might be in danger.
“Have expectations gotten to be too high?” is the question that worries me, he said.
