Walmart Earnings Preview: New CEO's Challenges and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- Earnings Report Preview: Walmart is set to release its earnings on Thursday, with expected earnings per share of 73 cents and revenue of $190.43 billion, reflecting the retail giant's digital transformation under new CEO Furner.
- Market Dynamics Analysis: Analysts anticipate that Walmart could benefit from favorable factors like tax cuts, despite mixed signals from the economy, including lackluster retail sales and job market uncertainties, indicating potential volatility in consumer spending.
- Strategic Focus Shift: New CEO Furner is likely to continue prioritizing online business growth and attracting customers across income levels while ramping up higher-margin businesses such as its third-party marketplace and advertising, aiming to enhance overall profitability.
- Market Position Change: Walmart is expected to lose its title as the largest retailer by annual revenue, as Amazon has already surpassed it in quarterly revenue and is on track to do so annually, highlighting the intensifying competition in the retail sector.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 128.850
Low
119.00
Averages
125.75
High
136.00
Current: 128.850
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Impressive Market Performance: Shortly after the new CEO took office, Walmart's market capitalization surpassed $1 trillion for the first time, demonstrating investor confidence in the company's future, particularly in its digital transformation and e-commerce expansion efforts.
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- Full-Year Sales Outlook: The company anticipates full-year net sales growth between 4.8% and 5.1%, with adjusted earnings per share ranging from $2.58 to $2.63, indicating a positive outlook for future market conditions.
- New CEO Strategy: New CEO John Furner is set to continue focusing on online business growth and attracting more middle to high-income customers, aiming to increase the company's share in higher-margin sectors like third-party marketplaces and advertising.
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- Market Dynamics Analysis: Analysts anticipate that Walmart could benefit from favorable factors like tax cuts, despite mixed signals from the economy, including lackluster retail sales and job market uncertainties, indicating potential volatility in consumer spending.
- Strategic Focus Shift: New CEO Furner is likely to continue prioritizing online business growth and attracting customers across income levels while ramping up higher-margin businesses such as its third-party marketplace and advertising, aiming to enhance overall profitability.
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- Strong Revenue Expectations: Walmart is projected to achieve fourth-quarter revenue of $188.43 billion, reflecting a 10.2% year-over-year increase, indicating the company's resilience in maintaining growth amid a slowdown in consumer spending, particularly as most sales derive from groceries and essentials.
- New CEO Appointment: John Furner succeeded Doug McMillon as CEO on February 1, and the market has high expectations for his leadership, especially in driving digital and AI-powered growth initiatives.
- Impressive Market Performance: Shortly after the new CEO took office, Walmart's market capitalization surpassed $1 trillion for the first time, demonstrating investor confidence in the company's future, particularly in its digital transformation and e-commerce expansion efforts.
- Analysts Optimistic About Future: Rothschild & Co Redburn raised Walmart's price target from $110 to $150, forecasting a 14% annual earnings growth through 2028, reflecting strong confidence in the company's digital opportunities and growth levers.
See More
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- Earnings Expectations: Walmart is expected to report Q4 earnings of 73 cents per share and revenue of $190.43 billion, reflecting the company's ongoing investment and transformation in digital business and artificial intelligence.
- Full-Year Sales Outlook: The company anticipates full-year net sales growth between 4.8% and 5.1%, with adjusted earnings per share ranging from $2.58 to $2.63, indicating a positive outlook for future market conditions.
- New CEO Strategy: New CEO John Furner is set to continue focusing on online business growth and attracting more middle to high-income customers, aiming to increase the company's share in higher-margin sectors like third-party marketplaces and advertising.
- Market Dynamics: Despite Walmart's stock rising about 22% over the past year, it is expected to lose the title of largest retailer by annual revenue, as Amazon has already surpassed Walmart in quarterly revenue, highlighting intensifying competition in the retail market.
See More
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- Earnings Report Preview: Walmart is set to release its earnings on Thursday, with expected earnings per share of 73 cents and revenue of $190.43 billion, reflecting the retail giant's digital transformation under new CEO Furner.
- Market Dynamics Analysis: Analysts anticipate that Walmart could benefit from favorable factors like tax cuts, despite mixed signals from the economy, including lackluster retail sales and job market uncertainties, indicating potential volatility in consumer spending.
- Strategic Focus Shift: New CEO Furner is likely to continue prioritizing online business growth and attracting customers across income levels while ramping up higher-margin businesses such as its third-party marketplace and advertising, aiming to enhance overall profitability.
- Market Position Change: Walmart is expected to lose its title as the largest retailer by annual revenue, as Amazon has already surpassed it in quarterly revenue and is on track to do so annually, highlighting the intensifying competition in the retail sector.
See More
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- S&P 500 Resistance: The S&P 500 index encountered technical resistance during the rebound, suggesting potential short-term adjustment pressures, prompting investors to proceed with caution.
- Earnings Expectations: Walmart's upcoming earnings report is highly anticipated, with the market closely watching its performance, which could significantly impact the overall retail sector trends and influence investor sentiment and market direction.
- Tech Stock Performance: The strong performance of ASML, Micron, and Nvidia not only propelled the market rebound but may also attract more capital into tech stocks, intensifying competition and innovation within the industry.
See More
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- Walmart Earnings Release: Walmart is set to report its quarterly earnings live from Nasdaq in Times Square, which is expected to have a direct impact on its stock price, especially as it has already fallen 6% from its 52-week high.
- Market Performance Analysis: The S&P 500 has risen 1.8% this week, although it remains the worst performer year-to-date, down nearly 4.3%, indicating market volatility and investor caution.
- Global Payments Strong Rebound: Global Payments shares surged 16% on Wednesday, driven by better-than-expected earnings and guidance, reflecting market confidence in its future growth prospects.
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See More
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- Walmart Earnings Expectations: Analysts anticipate that Walmart's fourth-quarter net sales will rise approximately 4%, with operating income potentially climbing as much as 11%, indicating a strong holiday performance that will further solidify its market dominance.
- Digital Growth Drivers: Strong pricing strategies and digital momentum are seen as key factors driving performance growth, while the advertising segment may also support gross margin improvements, showcasing Walmart's success in diversifying its revenue streams.
- Klarna Earnings Focus: Klarna is set to release its fourth-quarter and first annual report, with analysts expecting volume growth around 21% and revenue gains near 25%, which will be a crucial indicator of its ability to sustain growth amid intensifying competition in the payments market.
- Labor Market Data: Economists forecast that initial jobless claims for the week ending February 14 will reach 225,000, slightly down from the previous week, providing important insights into labor market health that could influence investor sentiment regarding economic outlook.
See More
