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Factors to Note as Walmart (WMT) is Queued Up for Q3 Earnings
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Walmart Inc. (WMT - Free Report) is likely to witness year-over-year growth in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Nov 16, before market open. The Zacks Consensus Estimate for revenues is pegged at $135.3 billion, suggesting a rise of 0.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has increased by a penny over the past seven days to $1.39 per share, which indicates a 3.7% rise from the figure reported in the prior-year period. The supermarket giant has a trailing four-quarter earnings surprise of 14.3%, on average. Walmart delivered an earnings surprise of 14.1% in the last reported quarter.
Walmart has been benefiting from rising demand for essential items amid the pandemic-induced higher at-home consumption. Further, the elevated stay-at-home trends are boosting e-commerce sales. On its second-quarter earnings call, management stated that it is seeing robust underlying trends and higher store traffic. Walmart’s third quarter began on a good note, with the back-to-school season underway. Management said that it expects to see continued gains in grocery market share. With more customers going out to shop in the United States, the company’s store environment is in good shape, while e-commerce remains on the growth trajectory.
Walmart’s e-commerce business and omnichannel penetration have been growing more amid the pandemic-led social distancing. In this regard, Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems. Talking of delivery services, the company’s investment in DroneUp, a pilot with HomeValet, introduction of Carrier Pickup by FedEx, Walmart+ membership program and a pilot with Cruise to test grocery delivery through self-driven all-electric cars are noteworthy. Also, the company has been undertaking efforts to enhance merchandise assortments and has also been focused on store remodeling to upgrade them with advanced in-store and digital innovation. These upsides helped Walmart’s U.S. comp sales increase for the 28th straight time in the last reported quarter. For the third quarter, the company anticipates comp sales (excluding fuel) in Walmart U.S. to increase 6-7%.
However, increased supply-chain costs and high COVID-19 expenses were concerns in the last reported quarter. On its earnings call, the company stated that it expects to witness a higher-than-normal inflationary environment. This raises concerns for the quarter under review. The quarterly results are likely to reflect impacts from the company’s recent divestiture of its businesses in Argentina, the U.K. and Japan.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Home Depot (HD - Free Report) has an Earnings ESP of +4.59% and carries a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly earnings has moved up 1.5% in the past seven days to $3.38 per share, suggesting 6.3% growth from the year-ago quarter’s reported number.
Home Depot’s top line is also expected to rise year over year. The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.77 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. HD has a trailing four-quarter earnings surprise of 9.2%, on average.
Lowe's Companies (LOW - Free Report) has an Earnings ESP of +14.12% and carries a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 1.3% in the last seven days to $2.30 per share, suggesting a 16.2% increase from the year-ago quarter’s reported number.
However, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.68 billion, suggesting a decline of 2.8% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.
Macy's (M - Free Report) has an Earnings ESP of +9.80% and holds a Zacks Rank #2. The company is likely to register bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 11.5% in the last seven days to 29 cents per share, suggesting an improvement from a loss of 19 cents per share reported in the year-ago quarter.
Macy's top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.22 billion, which suggests growth of 30.9% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.
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Factors to Note as Walmart (WMT) is Queued Up for Q3 Earnings
Walmart Inc. (WMT - Free Report) is likely to witness year-over-year growth in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Nov 16, before market open. The Zacks Consensus Estimate for revenues is pegged at $135.3 billion, suggesting a rise of 0.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has increased by a penny over the past seven days to $1.39 per share, which indicates a 3.7% rise from the figure reported in the prior-year period. The supermarket giant has a trailing four-quarter earnings surprise of 14.3%, on average. Walmart delivered an earnings surprise of 14.1% in the last reported quarter.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote
Key Factors to Note
Walmart has been benefiting from rising demand for essential items amid the pandemic-induced higher at-home consumption. Further, the elevated stay-at-home trends are boosting e-commerce sales. On its second-quarter earnings call, management stated that it is seeing robust underlying trends and higher store traffic. Walmart’s third quarter began on a good note, with the back-to-school season underway. Management said that it expects to see continued gains in grocery market share. With more customers going out to shop in the United States, the company’s store environment is in good shape, while e-commerce remains on the growth trajectory.
Walmart’s e-commerce business and omnichannel penetration have been growing more amid the pandemic-led social distancing. In this regard, Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems. Talking of delivery services, the company’s investment in DroneUp, a pilot with HomeValet, introduction of Carrier Pickup by FedEx, Walmart+ membership program and a pilot with Cruise to test grocery delivery through self-driven all-electric cars are noteworthy. Also, the company has been undertaking efforts to enhance merchandise assortments and has also been focused on store remodeling to upgrade them with advanced in-store and digital innovation. These upsides helped Walmart’s U.S. comp sales increase for the 28th straight time in the last reported quarter. For the third quarter, the company anticipates comp sales (excluding fuel) in Walmart U.S. to increase 6-7%.
However, increased supply-chain costs and high COVID-19 expenses were concerns in the last reported quarter. On its earnings call, the company stated that it expects to witness a higher-than-normal inflationary environment. This raises concerns for the quarter under review. The quarterly results are likely to reflect impacts from the company’s recent divestiture of its businesses in Argentina, the U.K. and Japan.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Walmart currently has a Zacks Rank #3 and an Earnings ESP of +1.97%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Retailers Likely to Post a Beat Next Week
Home Depot (HD - Free Report) has an Earnings ESP of +4.59% and carries a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for its quarterly earnings has moved up 1.5% in the past seven days to $3.38 per share, suggesting 6.3% growth from the year-ago quarter’s reported number.
Home Depot’s top line is also expected to rise year over year. The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.77 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. HD has a trailing four-quarter earnings surprise of 9.2%, on average.
Lowe's Companies (LOW - Free Report) has an Earnings ESP of +14.12% and carries a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 1.3% in the last seven days to $2.30 per share, suggesting a 16.2% increase from the year-ago quarter’s reported number.
However, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.68 billion, suggesting a decline of 2.8% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.
Macy's (M - Free Report) has an Earnings ESP of +9.80% and holds a Zacks Rank #2. The company is likely to register bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 11.5% in the last seven days to 29 cents per share, suggesting an improvement from a loss of 19 cents per share reported in the year-ago quarter.
Macy's top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.22 billion, which suggests growth of 30.9% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.