People walk near the entrance of a Walmart store in Miami, Florida on May 14, 2024.
Joe Raedle | Getty Images
Walmart will report earnings on Thursday as investors await the nation’s largest retailer to gauge the health of American consumers and the industry’s strength.
Here’s what Wall Street expects for the discount retailer, based on an analyst survey from LSEG:
- Earnings per share: 52 cents adjusted expected
- revenue: $159.50 billion
As the nation’s largest retailer and private employer, Walmart is often viewed as a bellwether for the U.S. economy. Still, it has generally fared better than other retailers during an inflationary period because it sells staples like groceries and has a value-driven reputation.
Nevertheless, the discounter is feeling the effects of inflation as its customers are putting fewer items in their shopping carts and are no longer opting for more expensive items such as televisions or computers.
This week brought promising news for Walmart and other retailers. Inflation eased in April, according to Labor Department data released Wednesday. The consumer price index rose 3.4% year-on-year. The closely watched number shows how much goods and services cost at the checkout.
Walmart expects quarterly and full-year sales to increase. The company said in February that it expects consolidated net sales to increase 4% to 5% in its fiscal first quarter. It also expected adjusted earnings per share of $1.48 to $1.56 based on a stock split. The company completed a three-for-one stock split in February.
Walmart has cut spending in some areas and invested heavily in others. Earlier this week, the company announced that it would lay off and relocate hundreds of its employees, including relocating many to its headquarters in Bentonville, Arkansas. That move was followed by another cost-cutting measure: the closure of Walmart Health Clinics, a network of doctor and dentist offices that had opened next door to the stores.
On the other hand, the major retailer has been pouring money into other efforts. Chasing advertising dollars, Walmart announced in February that it would acquire smart TV maker Vizio in a $2.3 billion deal. In addition, more than 1,400 stores across the country will be upgraded and upgraded. The company recently launched a new private label grocery brand with items and flavors aimed at younger and wealthier shoppers.
Shares of Walmart closed at $59.83 on Wednesday, increasing the company’s market share to $482.22 billion. The company’s shares are up nearly 14% so far this year, outpacing the S&P 500’s roughly 11% gains over the same period.
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2024-05-16 04:01:01
www.cnbc.com
