Walmart (WMT) is expected to post another strong quarter as inflation-weary shoppers continue to search for value.
The retail giant will post its fourth quarter and fiscal 2025 results on Thursday before the market open. Revenue and adjusted earnings per share are expected to increase to $180.21 billion and $0.65, respectively. Same-store sales in the US are estimated to jump 4.66% for the quarter.
Though «expectations are high,» Jefferies analyst Corey Tarlowe told Yahoo Finance Walmart will likely deliver «above expectations» as it continues to gain higher-income shoppers with its emphasis on value and convenience.
«This convenience aspect has allowed [it] to acquire and retain these higher-income customers, many of whom are taking advantage now of the benefits of [the subscription service] Walmart+,» he said.
Deutsche Bank analyst Krisztina Katai told clients in a note that she expects «record-high levels of member penetration» for Walmart+ in the second half of 2024 and into January 2025.
The improvement of discretionary purchases, as well as expansion of its online marketplace, could also be tailwinds, she said.
For the full year, Wall Street expects revenue to increase roughly 5% to $680.7 billion. In its previous quarterly report, Walmart raised its guidance for fiscal year 2025 for the third time.
Net sales were expected to grow between 4.8% and 5.1% for the fiscal year. Previously, Walmart guided to 3.75% to 4.75% sales growth.
«Investors will focus less on the quarter and more on the outlook for 2025, and specifically overlook what we expect to be an initial conservative, and below consensus, guide for the fiscal year,» Katai said.
Here’s what Walmart is expected to post for its fourth quarter results, per Bloomberg consensus estimates, compared to the previous year:
Revenue: $180.21 billion, versus $173.39 billion
Adjusted earnings per share: $0.65, versus $0.60
Overall US same-store sales growth: 4.66%, versus 3.9%
Walmart US same-store sales growth: 4.36%, versus 4%
Foot traffic growth: 2.67%, versus 4.3%
Ticket growth: 1.96%, versus -0.3%
E-commerce sales growth: 2.88%, versus 2.4%
Sam’s Club US same-store sales growth: 4.99%, versus 3.1%
Here’s what Walmart is expected to post for its fiscal year 2025 results, per Bloomberg consensus estimates, compared to the previous year:
Revenue: $680.70 billion, versus $648.13 billion
Adjusted earnings per share: $2.49, versus $2.33
Overall US same-store sales growth: 4.63%, versus 5.5%
Walmart US same-store sales growth: 4.62%, versus 5.6%
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