Walmart is about to report earnings. Here’s what to expect

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  • Walmart will report earnings before the bell on Tuesday.
  • Investors will be listening for early clues to how the holiday season is shaping up for Walmart and other retail players amid supply chain challenges and inflation.
  • The big-box giant may also provide updates on its efforts to make money in new ways, from growing its advertising business to motivating more consumers to sign up for its subscription service Walmart+.

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Walmart will report its fiscal third-quarter earnings before the bell on Tuesday. The retail giant is expected to provide clues about how the holiday season is shaping up.

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Here’s what Wall Street estimates for the three-month period, according to the Refinitiv consensus estimates:

  • Earnings Per Share: $1.40 Adjusted
  • Revenue: $135.60 billion

Walmart is among the retailers that have seen consumers shop more and shop online during the pandemic. Its e-commerce sales in the US grew by nearly 80% in the most recent fiscal year ended January 31. Yet even the country’s largest grocer by revenue lost some market share to competitors as some shoppers opted for supermarkets because they sought convenience or were less price sensitive.

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This appears to be the reverse, as Americans resume old habits and face sticker shock. In the second quarter, Walmart said it was regaining ground in its grocery business. It said it was hiring its own vessels to expedite the arrival of inventory between congested ports. It is extending its Black Friday deals throughout the month of November. Walmart is also betting that shoppers will buy holiday gifts earlier than usual due to concerns about toys and other wanted items running out or getting stuck at ports.

However, as a retail giant, Walmart may be able to better absorb higher costs, negotiate with vendors, and come up with workarounds as its rivals pay more for everything from labor to shipping. .

For the discounter, inflation can also work to its advantage.

“If people are worried about inflation, it’s going to attract more people to stores like Walmart, which have a little bit cheaper prices,” said Matt Malee, chief market strategist at Miller Tabak on CNBC’s “Trading Nation.” They can do well.”

Investors will also hear updates about the company’s efforts to make money in new ways, from growing its advertising business to motivating more consumers to sign up for its subscription service, Walmart+. Walmart is offering members early access to holiday sales for consumers to sign up during the holidays.

As of Monday’s close, Walmart shares are up about 2% this year. Shares fell less than 1% on Monday to close at $146.91, bringing Walmart’s market cap to $409.66 billion.

This is breaking news. Please check back for updates.

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