Walmart(US:WMT) Zhi Tong Cai Jing·2025-08-18 03:42Core Viewpoint - Walmart is facing challenges from trade policies and consumer sentiment but is expected to report strong Q2 earnings, with analysts optimistic about its digital strategy and e-commerce growth [1][2]. Financial Performance Expectations - Analysts anticipate adjusted earnings per share for Walmart to be in the range of $0.72 to $0.73, representing a year-over-year increase of 7.46% [1]. - Consolidated net profit is expected to reach $5.755 billion, up from $4.501 billion in the same period last year [1]. - Revenue is projected to be between $174 billion and $175.6 billion, reflecting a year-over-year growth of over 5.6% [1]. E-commerce and Digital Strategy - Walmart's e-commerce business is highlighted as a strong performer, with an annual growth rate of approximately 22% [1]. - The membership service Walmart+ has seen a user growth of 14.8%, contributing positively to the company's value-driven pricing strategy [1]. - Analysts expect U.S. e-commerce sales to exceed $21 billion, growing by 17.9% [2]. Segment Performance - U.S. sales are projected to reach $118 billion, a 2.9% increase year-over-year, with operating income expected at $7.011 billion and an operating margin of 5.9% [2]. - Sam's Club sales are anticipated to be $23.77 billion, up 3.5% year-over-year, with an operating income of $622 million [2]. - International sales are expected to reach $31.123 billion, reflecting a 5.3% year-over-year growth, with strong performance anticipated in China and India [2]. Analyst Ratings and Price Targets - D.A. Davidson maintains a "Buy" rating for Walmart with a target price of $108.87, noting that recent performance has exceeded expectations [3]. - Oppenheimer raised its target price from $110 to $115, maintaining an "Outperform" rating [3]. - Tigress Financial and Sanford Bernstein have also reiterated "Buy" ratings, with Tigress increasing its target price to $120 [3].