Walmart (WMT) Outlook Disappoints, Shares Plummet
Key Points:
* Walmart (WMT) shares plunged 6.23% Thursday, the worst single-day decline in over a year.
* The drop followed a weaker-than-expected 2025 outlook, casting doubt on the retailer's earnings trajectory.
* Walmart projected full-year earnings per share between $2.50 and $2.60, below analyst estimates of $2.76.
* Despite the sell-off, Wall Street analysts remain largely bullish on Walmart, citing its strong market position and consistent performance.
Analyst Commentary:
Citi, Jefferies, and JPMorgan reiterated their bullish ratings and price targets for Walmart.
Citi (Paul Lejuez):
* "Walmart's winning streak continues, despite weaker-than-expected 2025 guidance weighing on the stock."
* "Walmart US continues to gain market share, driven by its value proposition and convenience."
* "We believe 2025 guidance will prove conservative and that Walmart is well-positioned to outperform in the uncertain macroeconomic environment."
Jefferies (Corey Tarlowe):
* "Walmart remains the value leader in retail, well-positioned in the current environment."
* "We expect Walmart US to continue gaining share and benefiting from trade-downs and private label penetration."
JPMorgan (Christopher Horvers):
* "Walmart's underlying story remains largely intact."
* "The company continues to make progress in its 'second P&L,' with strong growth in advertising revenue and Walmart Fulfillment Services."