Walmart Outlook Disappoints, Investors Wake Up to Reality

Key Points:

* Walmart (WMT) shares plummeted 6.23% on Thursday due to a weak 2025 outlook.
* The retailer projected earnings per share (EPS) of $2.50 to $2.60, below analyst estimates of $2.76.
* Concerns over tariffs and consumer spending contributed to the negative outlook.
* Wall Street analysts remained bullish on Walmart, reiterating buy ratings and price targets.

Analyst Commentary:

Citi

* Reiterated Buy rating
* Price Target: $120
* "Walmart US continues to gain share... Higher growth businesses are contributing to profits and will drive margins in the future."

Jefferies

* Reiterated Buy rating
* Price Target: $120
* "Walmart is well-positioned in the present environment. We believe Walmart US will continue to gain share."

JPMorgan

* Reiterated Overweight rating
* Price Target: $112
* "The Walmart story is largely intact... Progress in the 'second P&L' is continuing."

Market Reaction:

* Shares were unchanged in pre-market trading on Friday.
* EPS estimates have trended lower but remain above the company's guidance.
* Analysts believe Walmart's outlook is conservative and that the company is well-positioned to outperform in an uncertain economic environment.