Walmart (WMT) prepares to disclose earnings for its fiscal first quarter early Thursday. Walmart stock was little changed near a buy point Wednesday.
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The Walmart earnings report comes after Home Depot (HD) signaled a consumer pullback Tuesday, with lower revenue and store traffic in its latest quarter.
Walmart Earnings
Estimates: Analysts expect Walmart earnings to rise 7% to 53 cents, according to FactSet. Revenue is seen growing 5%, year over year, to $159.51 billion, for the quarter ended in April.
Results: Check back early Thursday.
Outlook: Wall Street expects earnings per share of $2.37 for the full year, a 7% increase.
The Dow Jones retail behemoth — and the nation’s largest grocer — guided revenue for fiscal 2025 higher in February after Q4 earnings unexpectedly rose 5% vs. expectations for a decline.
Walmart Stock
Shares of Walmart fell 3 cents to 59.83 in Wednesday’s stock market trading.
Walmart stock shows a shallow double-bottom base with a 60.89 buy point. WMT briefly topped that entry on Monday before reversing lower.
The relative strength line for Walmart stock shows some lag. The RS line, the blue line in the chart shown, measures a stock’s performance against the S&P 500.
Walmart stock split 3-for-1 in February.
Nation’s Largest Grocer
Groceries have helped to boost recent Walmart earnings, offsetting declines in general merchandise. Roughly 60% of Walmart’s annual domestic sales come from groceries.
On top of that, Walmart has managed to draw more frequent and new shoppers amid price inflation.
The latest earnings from travel-related companies signaled the consumer is still resilient. The retail earnings season, now underway, will shed more light on whether the American shopper is still spending.
Bank of America analyst Savita Subramanian recently warned that “consumer cracks are emerging,” especially among lower-income shoppers.
But Amazon said its customers continue to shop though they are cautious, trading down to lower-priced items and seeking out deals.
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