Walmart's 2025 Outlook Disappoints Investors, Sends Shares Plunging
Key Highlights:
- Walmart shares plummeted 6.23% on Thursday, marking their worst day in over a year.
- The decline follows a weak 2025 outlook from the retailer.
- Walmart expects full-year earnings per share between $2.50 and $2.60, below analysts' estimates of $2.76.
- Tariff and consumer spending concerns weighed on the company's profit projections.
- Despite the sell-off, analysts remain largely bullish on Walmart's stock, reiterating buy ratings and price targets.
Wall Street Analyst Reactions:
Citi:
- Reiterated Buy rating
- Price Target: $120
- Believes Walmart's competitive advantage remains strong, with continued share gains in all income cohorts.
- Anticipates higher growth businesses, such as marketplace and advertising, to contribute to future margin expansion.
Jefferies:
- Reiterated Buy rating
- Price Target: $120
- Cites Walmart's position as the value leader in retail as a key advantage in the current environment.
- Expects continued share gains and growth in private label penetration.
JPMorgan:
- Reiterated Overweight rating
- Price Target: $112
- Believes Walmart's margin control and traditional retail strengths mitigate the impact of the weak outlook.
- Notes progress in alternative profit pools, such as advertising revenue and Walmart Fulfillment Services.