Walmart (WMT) Shares Near All-Time High Ahead of Earnings

Core Insights - Walmart is set to report its fiscal second-quarter earnings results, which is a critical week for retail earnings [1] - Analysts expect Walmart to deliver quarterly earnings of 73 cents per share, an 8.96% increase compared to the same quarter last year [2] - The Zacks Consensus Estimate for Q2 revenues is $175.51 billion, reflecting a 3.65% improvement year-over-year [5] Earnings Expectations - Analysts' estimates for Walmart's earnings have increased by 1.39% in the past week [2] - Walmart has met or exceeded earnings estimates for twelve consecutive quarters, with a trailing four-quarter average earnings surprise of 5.27% [3] - The company's Earnings ESP indicator is at +1.26%, suggesting a high probability of an earnings beat [4] Revenue and Sales Growth - Walmart anticipates net sales growth between 3.5% and 4.5%, driven by its core U.S. business and global expansion [7] - U.S. same-store sales (excluding fuel) are expected to grow by 4.17%, compared to 4.8% in the previous quarter and 4.3% a year ago [8] - The grocery and essential home items sectors, which account for approximately 60% of sales, are performing well due to Walmart's value pricing strategy [9] E-commerce and Membership Growth - Walmart's e-commerce sales rose 22% globally in the first quarter, with U.S. e-commerce sales increasing by 21% [10] - Membership fee income grew by 14.8% in the first quarter, driven by Walmart+ subscriptions and strong renewals at Sam's Club [11] Challenges and Risks - Walmart has expressed concerns about potential hurdles from tariffs and a fluid economic environment, which may impact future earnings [12] - Despite a strong start to the year, the company acknowledges that it is not fully immune to the effects of ongoing tariffs [14] - Macroeconomic concerns and currency fluctuations are also potential challenges to profitability [14] Market Outlook - Market participants are looking to Walmart for insights on consumer and retailer responses to tariffs, especially after a recent uptick in retail sales [16] - The stock has slightly outperformed the market this year, up around 13%, but has lagged since April [5]