Walmart's Earnings Forecast: What Investors Should Know
Understanding Walmart's Upcoming Earnings Report
Walmart (WMT) is gearing up to unveil its quarterly earnings, and it is an event that has captured the attention of investors. There's a palpable excitement in the market, as analysts predict that the company will report an earnings per share (EPS) of $0.74. With high expectations surrounding this announcement, many are eager to see if Walmart will exceed these predictions and provide positive guidance for the upcoming quarter.
Reviewing Previous Earnings Performance
In the last earnings report, Walmart managed to outperform expectations by achieving an EPS that was $0.03 above estimates, which resulted in a 1.96% surge in shares in the following trading session.
Here is a summary of Walmart's earnings performance:
Earnings Trends
The following is a tabulated overview of Walmart's earnings estimates and actual results over the last four quarters:
Quarterly Performance Overview
- Q1 2026: EPS Estimate: 0.58, EPS Actual: 0.61, Price Change: 2.0%
- Q4 2025: EPS Estimate: 0.64, EPS Actual: 0.66, Price Change: -2.0%
- Q3 2025: EPS Estimate: 0.53, EPS Actual: 0.58, Price Change: 1.0%
- Q2 2025: EPS Estimate: 0.64, EPS Actual: 0.67, Price Change: 1.0%
Current Stock Performance
As of a recent trading day, shares of Walmart were valued at $101.29. This is particularly noteworthy as it represents a 34.84% increase over the past year. Long-term investors are undoubtedly feeling optimistic as this earnings report approaches, bolstered by the positive trend in Walmart’s stock.
Analyst Insights and Market Sentiments
It’s essential for investors to grasp current market sentiments. An analysis from 14 analysts indicates that Walmart has a consensus rating of Outperform, with a one-year price target averaging at $113.43. This prediction points to a potential upside of approximately 11.99% in the next year.
Comparative Analysis with Industry Peers
Understanding peer performance is integral in the retail sector. Here’s how Walmart stacks up against other major players like Costco, Target, and Dollar General in terms of analyst ratings and price expectations:
- Costco Wholesale: Outperform, Price Target: $1106.0, Potential Upside: 991.91%
- Target: Neutral, Price Target: $103.05, Potential Upside: 1.74%
- Dollar General: Neutral, Price Target: $116.65, Potential Upside: 15.16%
Insights on Peer Performance
Let’s take a closer look at some vital metrics that outline Walmart's position in the industry relative to its competitors:
Industry Metrics Overview
Walmart: Consensus: Outperform, Revenue Growth: 2.54%, Gross Profit: $41.31B, Return on Equity: 5.13%
Costco Wholesale: Consensus: Outperform, Revenue Growth: 8.02%, Gross Profit: $8.21B, Return on Equity: 7.22%
Target: Consensus: Neutral, Revenue Growth: -2.79%, Gross Profit: $6.72B, Return on Equity: 7.00%
Dollar General: Consensus: Neutral, Revenue Growth: 5.26%, Gross Profit: $3.23B, Return on Equity: 5.19%
From this analysis, it’s evident that Walmart excels in Gross Profit and Return on Equity compared to its peers, while it sits mid-tier in terms of Revenue Growth.
Walmart's Business Model and Background
Walmart has solidified its reputation as a leading retailer, focusing on operating efficiently and consistently offering cost-effective products to attract consumers. This approach has been enhanced by establishing a convenient shopping experience, starting with its first supercenter launch in 1988. Now, Walmart boasts over 4,600 U.S. stores, along with 10,000+ locations worldwide, showcasing its global presence.
Financial Position and Projections
Market Capitalization: Walmart's significant market capitalization underscores its commanding presence within the retail industry, which bodes well for investor confidence.
Revenue Growth: In recent months, Walmart has seen revenue growth of about 2.54%. While this signifies an upward trend, it is notably lower than the sector average.
Net Margins and ROE: Currently, Walmart's net margin is approximately 2.71%, below industry standards. Similarly, its Return on Equity (ROE) is just 5.13%, suggesting there may be room for improvement in profitability.
Debt Management: On a positive note, Walmart maintains a debt-to-equity ratio of 0.8, which is favorable compared to industry peers. This indicates a lower reliance on debt, effectively balancing its financial structure.
Frequently Asked Questions
What are the anticipated earnings for Walmart?
The anticipated earnings per share (EPS) for Walmart is $0.74.
How has Walmart performed in recent earnings?
In the last earnings release, Walmart beat estimates by $0.03, resulting in a 1.96% increase in share price.
What is the consensus rating for Walmart from analysts?
The consensus rating is 'Outperform' with a one-year price target of $113.43.
How does Walmart's revenue growth compare to its peers?
Walmart's revenue growth is currently at 2.54%, which is lower than several of its competitors like Costco.
What is Walmart's market capitalization signaling?
Walmart's market capitalization suggests a strong market presence and investor confidence compared to peers.
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