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What's In The Cards For Walmart This Earnings Season?
WMTWalmart(WMT) Benzinga·2025-01-29 19:22

Core Viewpoint - Goldman Sachs analyst Kate McShane maintains a Buy rating on Walmart Inc. with a price target of 101,anticipatingstrongearningsgrowthandstrategicdevelopmentsintheupcomingmonths[1].Group1:EarningsandFinancialPerformance−Walmartisexpectedtoreportitsfourth−quarterearningsonFebruary20th,withaninvestmentcommunitymeetingscheduledforApril8thand9th,whichcouldserveasacatalystforstockgrowth[1].−Thefourth−quarterU.S.same−storesalesestimatehasbeenraisedto+4.9101, anticipating strong earnings growth and strategic developments in the upcoming months [1]. Group 1: Earnings and Financial Performance - Walmart is expected to report its fourth-quarter earnings on February 20th, with an investment community meeting scheduled for April 8th and 9th, which could serve as a catalyst for stock growth [1]. - The fourth-quarter U.S. same-store sales estimate has been raised to +4.9% from +4.7%, and the gross margin estimate has increased to 23.8% from 23.7%, leading to a slight EPS increase to 0.65 from 0.64[4].−FY24/25/26EPSestimateshavebeenraisedbyapproximately0.50.64 [4]. - FY24/25/26 EPS estimates have been raised by approximately 0.5%, now projected at 2.50, 2.78,and2.78, and 3.16 respectively [4]. Group 2: Competitive Advantage and Growth Drivers - Walmart's competitive advantage is being enhanced through alternative revenue streams and automation, which are expected to positively impact operating income in the coming years [3]. - The company's automation investments have surpassed productivity targets, improving inventory flow and reducing labor costs, while maintaining everyday low prices for customers [3]. - The company is positioned to continue solid earnings growth into 2025, driven by market share gains and an improving profitability profile, as operating income has outpaced sales in the third quarter [2].