Walmart is expected to have a strong quarter amid the inflation turning consumers towards budget-conscious shopping. Walmart earnings for the fourth quarter will be announced on February 20 before the market opens. Revenue and adjusted earnings per share are predicted to rise to $180.21 billion and $0.65, respectively. US same-store sales are expected to grow by 4.66% for the quarter.
Corey Tarlowe, Jeffries analyst said that expectations are high from Walmart but the retail giant will manage to outperform the estimates as high-income consumers continue to buy cost-value products amid the inflation. He also said, “This convenience has helped it attract and keep higher-income customers, many of whom are now enjoying the perks of the subscription service.
Walmart Q4 Earnings Forecast
For the full year, Wall Street expects revenue to rise about 5% to $680.7 billion. In its last quarterly report, Walmart raised its forecast for fiscal year 2025 for the third time. Net sales are expected to grow between 4.8% and 5.1% for the year, up from the earlier forecast of 3.75% to 4.75%.
Walmart’s Earnings Growth Last Year
Walmart’s Q4 earnings results are expected to show strong growth compared to the previous year, according to Bloomberg consensus estimates. Revenue is projected to reach $180.21 billion, up from $173.39 billion. Adjusted earnings per share are forecasted to rise to $0.65, compared to $0.60 last year. Overall US same-store sales growth is anticipated to increase by 4.66%, up from 3.9%. For Walmart US, same-store sales growth is expected to be 4.36%, slightly ahead of last year’s 4%.
Walmart Sales Boost Amid Inflation
Walmart has some unique advantages that could help it thrive, no matter the economic conditions. Its online sales have been growing, with 10 consecutive quarters of double-digit increases. While its advertising and third-party marketplace are smaller than Amazon’s, they’ve seen growth and higher margins than Walmart’s retail business.
Additionally, Walmart has attracted more high-income customers. CEO Doug McMillon mentioned in November that households earning over $100,000 contributed to 75% of market share gains in the third quarter.
Walmart Stock Update
As of Wednesday’s market close, Walmart’s shares have surged by around 83% over the past year. They finished the day at $104.00, marking a 15% increase so far this year. This impressive rise has far outpaced the S&P 500, which has only gained about 4% over the same period. Walmart’s strong performance reflects its growth and resilience in the market, making it a standout compared to broader market trends.
