A Walmart in Atlanta, Georgia, on Sunday, Feb. 19, 2023.
Dustin Chambers | Bloomberg | Getty Images
Walmart will report its holiday quarter results on Tuesday morning, as investors attempt to get a clearer picture of what the 12 months ahead holds for retailers and the U.S. economy.
Here’s what Wall Street analysts expect, in line with a survey by LSEG, formerly often known as Refinitiv:
- Earnings per share: $1.65
- Revenue: $170.71 billion
Because the nation’s largest retailer and personal employer, Walmart often serves as a barometer for a way consumers feel about their funds and the way they’re managing challenges like elevated grocery prices. The corporate will even kick off the most important earnings season for the retail industry.
Walmart said in November that it expected full-year adjusted earnings per share of $6.40 to $6.48. It also said it anticipates consolidated net sales will rise 5% to five.5%, also a rise from its prior range.
There are early clues that broader trends may bode well for Walmart’s fourth quarter. Holiday sales rose 3.8% 12 months over 12 months to $964.4 billion, in line with the National Retail Federation. Those figures are tallied during November and December, but exclude sales at automobile dealers, gas stations and restaurants.
Alternatively, consumer spending dropped greater than expected in January, in line with the Commerce Department. It could indicate shoppers have paused purchases beyond the necessities as holiday bills got here due.
Walmart has weathered high inflation higher than many other retailers. It has used its value fame to attract in families across income levels and leaned into recent ways to earn money, reminiscent of selling ads, expanding its third-party marketplace and offering a subscription-based program called Walmart+.
As many other corporations have announced cost cuts, Walmart has done the other. It announced in late January that it will open or expand greater than 150 stores within the U.S. over the subsequent five years. That is on top of an aggressive plan to upgrade greater than 1,400 of its existing Walmart stores to have a more modern look.
Together with those store investments, Walmart said it will raise store manager wages to a mean of $128,000 per 12 months and make managers eligible for a bonus of as much as 200% of their base salary.
It also announced a 3-for-1 stock split in late January, as shares hovered near an all-time high.
Even so, Walmart said the 12 months ahead could bring recent complexities. CEO Doug McMillon told investors on a November earnings call that deflation could possibly be coming as prices of general merchandise and groceries fall. Those lower prices would likely ding Walmart’s top-line sales numbers, but could release money for patrons to purchase more discretionary items.
Shares of Walmart closed on Friday at $170.36, up about 8% thus far this 12 months. The stock has outperformed the S&P 500, which rose about 5% in the course of the same period.
This story is developing. Please check back for updates.