Walmart Poised for Strong Quarter Amidst Value-Conscious Shoppers
Earnings Overview
Walmart (WMT) is set to report its fourth quarter and fiscal 2025 results before market open on Thursday. Analysts anticipate record-breaking performance driven by the influx of value-seeking consumers navigating inflation.
Q4 Expectations
* Revenue: $180.21 billion (up from $173.39 billion)
* Adjusted Earnings Per Share (EPS): $0.65 (up from $0.60)
* US Same-Store Sales Growth: 4.66% (outpacing last quarter's 3.9%)
* Higher-income customer acquisition and retention due to Walmart+'s convenience
* Tailwinds from discretionary purchases and online marketplace expansion
Fiscal 2025 Outlook
* Revenue: $680.70 billion (up from $648.13 billion)
* Adjusted EPS: $2.49 (up from $2.33)
* US Same-Store Sales Growth: 4.63%
* Continued leadership and market share growth driven by defensive product mix and customer focus
Competitive Landscape
Walmart has surpassed industry benchmarks, with its stock soaring over 75% in the past year compared to a 23% gain for the S&P 500 (^GSPC) and a 13% decline for Target (TGT).
Inflationary Pressures and Tariffs
* Walmart's domestic manufacturing and assembly practices provide some insulation from import costs.
* However, rising expenses may ultimately translate into higher consumer prices.
Investment Opportunities
Analysts recommend continued investment in Walmart due to its strong financial position, talent and technology leverage, and potential for growth from high-margin revenue streams like advertising and fulfillment services.