Arkansas-based Walmart Inc. (WMT) is a retail company. It operates a chain of hypermarkets, discount department stores, and grocery stores. With a market cap of $561.3 billion, Walmart operates through Walmart U.S., Walmart International, and Sam's Club segments. The retail giant is expected to announce its Q2 earnings before the market opens on Thursday, August 15.
Ahead of the event, analysts expect Walmart to report a profit of $0.65 per share, up 6.6% from $0.61 per share reported in the year-ago quarter. The company has consistently surpassed or met Wall Street’s EPS projection in each of the past four quarters. Its EPS for the last reported quarter grew 22.5% to $0.60 and exceeded the consensus estimates by 15.4%.
Looking ahead to fiscal 2025, analysts expect Walmart to report an EPS of $2.43, up 9.5% from $2.22 in fiscal 2024. In fiscal 2026, its EPS is expected to grow 9.9% year over year to $2.67.
WMT stock is up 32.8% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 14.5% gains and the S&P 500 Cons Staples Sector SPDR’s (XLP) 9% returns over the same time frame.
Walmart stock rose 7% following its Q1 earnings release on May 16. The company showed impressive revenue and profitability growth. Its total revenues surged 6% year over year to $161.5 billion, while net income attributable to shareholders jumped from $1.67 billion in the year-ago quarter to $5.1 billion.
Moreover, the company repurchased shares worth $1.1 billion in fiscal Q1 and has a record of increasing dividends for 50 consecutive years, demonstrating its commitment to shareholders.
The consensus opinion on Walmart stock is bullish with an overall “Strong Buy” rating. Out of the 31 analysts covering the stock, 24 recommend “Strong Buy,” four suggest “Moderate Buy,” and three advocate a “Hold” rating. This configuration is slightly more bullish than three months before, with 21 analysts recommending a “Strong Buy.”
The average target price for Walmart is $73.28, indicating a potential upside of 5% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
