What Analysts Think of Walmart’s Stock Ahead of Earnings
Main points
- Walmart is set to report earnings on Tuesday morning, and analysts expect sales to continue growing as Walmart expands its customer base.
- The retailer said its market share has grown in line with income levels in recent quarters, and analysts say that should continue.
- Walmart’s growing digital advertising business is also a focus, and Bank of America analysts say it is boosting Walmart’s overall profit margins.
Walmart (WMT) will report third-quarter fiscal 2025 earnings before the bell on Tuesday, and analysts expect sales to improve as Walmart continues to expand its customer base across income levels.
Analysts are bullish on the retail giant’s stock, with 22 of 23 analysts tracked by Visible Alpha covering Walmart Rate a stock is a “buy” and only one analyst calls it a “hold.” However, some analysts may be waiting for Walmart’s latest quarter results to adjust their outlook on the stock going forward: target price $86.43, up about 3% from last Friday’s closing price.
Walmart expected to report quarterly results income Reaching US$167.73 billion, higher than US$160.8 billion in the same period last year. Retailers are expected to release net income $4.24 billion, up from $453 million last year, when its profits were affected by negative changes in the value of some investments.
Walmart’s adjusted profit is expected to rise to $4.26 billion from $4.13 billion in the second quarter.
Revenues at different income levels, advertising revenue becomes the focus
Bank of America analysts recently wrote that they see Walmart’s market share Earnings at different income levels The latest quarter continues.
Analysts at Melius Research said this was because the retailer had made a “concerted effort” in recent years to prepare for a “stressful macroeconomic environment”. can win customers Packaging from dollar store rivals is smaller and prices are lower, while also investing in convenience features like faster shipping for Walmart+ members.
Bank of America analysts also said advertising revenue is a key part of Walmart’s business because its high profit margins help boost the company’s overall profits.
Walmart shares are up about 60% this year.