Retail behemoth Walmart (NYSE: WMT) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
Walmart met analysts’ revenue expectations last quarter, reporting revenues of $165.6 billion, up 2.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.
Is Walmart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Walmart’s revenue to grow 3.9% year on year to $176 billion, in line with the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Walmart has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Walmart’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.3%, and Grocery Outlet reported revenues up 4.5%, falling short of estimates by 0.6%. Sprouts traded down 4.1% following the results while Grocery Outlet was up 42.9%.
Read our full analysis of Sprouts’s results here and Grocery Outlet’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 6.4% on average over the last month. Walmart is up 6% during the same time and is heading into earnings with an average analyst price target of $110.95 (compared to the current share price of $101.40).
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