Walmart's Earnings Will Illustrate How the American Consumer Is Doing

Core Insights - Walmart is set to report its third-quarter results, highlighting the challenges faced by both the company and its customers [1][9] - The company is undergoing a leadership transition with CEO Doug McMillon stepping down, and John Furner taking over [2] Company Performance - Walmart's shares reached an all-time high last month but have since declined by approximately 8% [3] - The company has experienced significant growth in its e-commerce and delivery sectors, attracting higher-income customers while also gaining market share among middle- and low-income consumers [3] Consumer Behavior - There are indications that consumers are becoming more cautious, particularly among middle- and low-income shoppers who are avoiding certain items due to price increases caused by tariffs [4] - Despite a record low in consumer sentiment in November, retail spending has continued to rise, potentially driven by affluent consumers benefiting from stock market gains [7] Financial Expectations - Analysts predict Walmart will report revenues of $177.5 billion, reflecting a 4.7% increase year-over-year, with earnings per diluted share expected to rise to $0.60 from $0.58 [10] - Same-store sales in the U.S. are anticipated to increase by about 3.9% according to consensus estimates [10] Market Outlook - Walmart's results and outlook are considered a valuable indicator of consumer health due to its scale in the retail market [5][9] - Wall Street analysts maintain a bullish outlook on Walmart's stock, with all tracked analysts holding positive ratings [11]