Walmart's Guidance Falls Short of Expectations, Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WMT?
Source: Newsfilter
- Guidance Miss: Walmart's latest earnings report projects adjusted earnings per share for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket share drop of over 2%.
- Leadership Transition Challenges: With new CEO John Furner recently taking the helm, investor focus intensifies on the company's future performance, particularly given Walmart's stock has risen over 21% in the past year.
- Market Reaction and Competitive Pressure: Despite Walmart's market cap surpassing $1 trillion earlier this month, investor confidence in future growth is challenged amid increasing competition in the retail sector.
- Other Retail Updates: In contrast, Wayfair reported its first annual sales gain since 2020, while Etsy's shares surged after beating Wall Street's earnings expectations, highlighting the varied performance across the retail landscape.
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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: 126.620
Low
119.00
Averages
125.75
High
136.00
Current: 126.620
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.
Walmart Q4 Earnings Beat Expectations
- Strong Earnings Report: Walmart's Q4 non-GAAP EPS of $0.74 exceeded expectations by $0.01, with revenue reaching $190.7 billion, a 5.6% year-over-year increase that surpassed market expectations by $2.38 billion, demonstrating the company's resilience amid economic challenges.
- Robust E-commerce Growth: Global eCommerce sales surged 24%, primarily driven by store-fulfilled pickup and delivery services, indicating Walmart's successful digital transformation and further solidifying its market position.
- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
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Walmart Earnings Impact Stock Market Volatility
- Earnings Release Impact: Following Walmart's (WMT) latest earnings report, the stock faced pressure, affecting its 780 million shares held across 462 ETFs, highlighting its significance in the market.
- ETF Holdings Analysis: Walmart's extensive ownership means its stock price fluctuations can significantly impact ETF performance, particularly for concentrated funds like Global X PureCap MSCI Consumer Staples ETF (18.37%) and Fidelity MSCI Consumer Staples Index ETF (15.82%).
- Market Volatility Transmission: As one of the largest U.S. equities, Walmart's stock price movements not only affect individual shares but can also trigger ripple effects across the entire consumer goods sector's ETFs, especially amid increasing market uncertainty.
- Investor Focus: With Walmart's earnings results causing market volatility, investors should monitor its impact on related ETFs, particularly within consumer goods and retail-themed investment strategies.
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- Growth Drivers: The revenue surge is attributed to the acceleration of AWS services and the continuous growth of third-party seller revenue, showcasing Amazon's robust competitiveness in technology and e-commerce, with potential for further market share expansion.
- Historical Comparison: In 2010, Amazon's revenue was just $34.2 billion compared to Walmart's $422 billion, highlighting Amazon's rapid growth and market transformation over the past decade, reflecting changing consumer shopping habits.
- Founding Background: Founded by Jeff Bezos in 1994 in a garage in Bellevue, Washington, Amazon evolved from an online bookstore to the world's largest e-commerce platform, demonstrating its innovation and adaptability to market demands.
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- Eucalyptus Performance: As Australia's largest digital health provider with an annual revenue exceeding $450 million, the acquisition is expected to provide Hims & Hers with significant revenue growth potential, thereby strengthening its competitive edge in the Asia-Pacific market.
- Walmart Earnings Report: Walmart's fourth-quarter earnings report revealed a 4.6% increase in U.S. comparable sales, aligning with market expectations, although its stock fell 2.20%; the increase in transaction volume and average ticket size indicates robust consumer spending.
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Walmart's Guidance Falls Short of Expectations
- Guidance Miss: Walmart's latest earnings report projects adjusted EPS for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket stock drop of over 2%.
- Challenges Under New CEO: With John Furner taking the helm amid intensifying market competition, investor focus on his strategic direction is increasing, which could impact stock performance.
- Market Performance Review: Despite a recent stock increase of over 21% and nearly 175% over the past five years, the lowered guidance may raise concerns about Walmart's future growth potential among investors.
- Industry Dynamics Impact: On the same day as Walmart's report, Wayfair posted its first annual sales gain, while Etsy's stock rose after beating earnings expectations, indicating a potential pressure on Walmart from the recovering retail sector.
See More
Walmart's Guidance Falls Short of Expectations, Shares Drop
- Guidance Miss: Walmart's latest earnings report projects adjusted earnings per share for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket share drop of over 2%.
- Leadership Transition Challenges: With new CEO John Furner recently taking the helm, investor focus intensifies on the company's future performance, particularly given Walmart's stock has risen over 21% in the past year.
- Market Reaction and Competitive Pressure: Despite Walmart's market cap surpassing $1 trillion earlier this month, investor confidence in future growth is challenged amid increasing competition in the retail sector.
- Other Retail Updates: In contrast, Wayfair reported its first annual sales gain since 2020, while Etsy's shares surged after beating Wall Street's earnings expectations, highlighting the varied performance across the retail landscape.
See More
Walmart Q4 Earnings Beat Expectations
- Strong Earnings Report: Walmart's Q4 non-GAAP EPS of $0.74 exceeded expectations by $0.01, with revenue reaching $190.7 billion, a 5.6% year-over-year increase that surpassed market expectations by $2.38 billion, demonstrating the company's resilience amid economic challenges.
- Robust E-commerce Growth: Global eCommerce sales surged 24%, primarily driven by store-fulfilled pickup and delivery services, indicating Walmart's successful digital transformation and further solidifying its market position.
- Thriving Advertising Business: Walmart's global advertising revenue grew by 37%, with Walmart Connect in the U.S. up 41%, which not only enhances the company's revenue streams but also strengthens its competitive edge in the advertising market.
- Cautious Future Outlook: The company projects net sales growth of 3.5% to 4.5% for FY27, below the market consensus of 5.01%, with adjusted EPS expected to be between $2.75 and $2.85, reflecting uncertainty regarding future economic conditions.
See More
Walmart Earnings Impact Stock Market Volatility
- Earnings Release Impact: Following Walmart's (WMT) latest earnings report, the stock faced pressure, affecting its 780 million shares held across 462 ETFs, highlighting its significance in the market.
- ETF Holdings Analysis: Walmart's extensive ownership means its stock price fluctuations can significantly impact ETF performance, particularly for concentrated funds like Global X PureCap MSCI Consumer Staples ETF (18.37%) and Fidelity MSCI Consumer Staples Index ETF (15.82%).
- Market Volatility Transmission: As one of the largest U.S. equities, Walmart's stock price movements not only affect individual shares but can also trigger ripple effects across the entire consumer goods sector's ETFs, especially amid increasing market uncertainty.
- Investor Focus: With Walmart's earnings results causing market volatility, investors should monitor its impact on related ETFs, particularly within consumer goods and retail-themed investment strategies.
See More
Amazon Surpasses Walmart as World's Largest Company by Revenue
- Revenue Milestone: Amazon (AMZN) reported $716.9 billion in revenue for fiscal year 2025, surpassing Walmart (WMT) at $713.2 billion, marking a significant shift in global retail leadership and ending Walmart's 13-year reign at the top.
- Growth Drivers: The revenue surge is attributed to the acceleration of AWS services and the continuous growth of third-party seller revenue, showcasing Amazon's robust competitiveness in technology and e-commerce, with potential for further market share expansion.
- Historical Comparison: In 2010, Amazon's revenue was just $34.2 billion compared to Walmart's $422 billion, highlighting Amazon's rapid growth and market transformation over the past decade, reflecting changing consumer shopping habits.
- Founding Background: Founded by Jeff Bezos in 1994 in a garage in Bellevue, Washington, Amazon evolved from an online bookstore to the world's largest e-commerce platform, demonstrating its innovation and adaptability to market demands.
See More
Hims & Hers Acquires Eucalyptus for Up to $1.15B
- Acquisition Announcement: Hims & Hers Health has announced the acquisition of Australian digital health provider Eucalyptus in a cash and stock deal valued at up to $1.15 billion, which will enhance its market position in the digital health sector.
- Eucalyptus Performance: As Australia's largest digital health provider with an annual revenue exceeding $450 million, the acquisition is expected to provide Hims & Hers with significant revenue growth potential, thereby strengthening its competitive edge in the Asia-Pacific market.
- Walmart Earnings Report: Walmart's fourth-quarter earnings report revealed a 4.6% increase in U.S. comparable sales, aligning with market expectations, although its stock fell 2.20%; the increase in transaction volume and average ticket size indicates robust consumer spending.
- Phillips 66 Strategy: Phillips 66 gained 2.64% in premarket trading as it seeks to buy heavy crude directly from Venezuela's state oil company PDVSA in collaboration with Citgo Petroleum, a strategy aimed at maximizing profits by bypassing other suppliers.
See More
Walmart's Guidance Falls Short of Expectations
- Guidance Miss: Walmart's latest earnings report projects adjusted EPS for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket stock drop of over 2%.
- Challenges Under New CEO: With John Furner taking the helm amid intensifying market competition, investor focus on his strategic direction is increasing, which could impact stock performance.
- Market Performance Review: Despite a recent stock increase of over 21% and nearly 175% over the past five years, the lowered guidance may raise concerns about Walmart's future growth potential among investors.
- Industry Dynamics Impact: On the same day as Walmart's report, Wayfair posted its first annual sales gain, while Etsy's stock rose after beating earnings expectations, indicating a potential pressure on Walmart from the recovering retail sector.
See More
Walmart's Guidance Falls Short of Expectations, Shares Drop
- Guidance Miss: Walmart's latest earnings report projects adjusted earnings per share for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket share drop of over 2%.
- Leadership Transition Challenges: With new CEO John Furner recently taking the helm, investor focus intensifies on the company's future performance, particularly given Walmart's stock has risen over 21% in the past year.
- Market Reaction and Competitive Pressure: Despite Walmart's market cap surpassing $1 trillion earlier this month, investor confidence in future growth is challenged amid increasing competition in the retail sector.
- Other Retail Updates: In contrast, Wayfair reported its first annual sales gain since 2020, while Etsy's shares surged after beating Wall Street's earnings expectations, highlighting the varied performance across the retail landscape.
See More
