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Factors to Note Before Walmart's (WMT) Q2 Earnings Results
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Walmart Inc. (WMT - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2024 earnings on Aug 17. The Zacks Consensus Estimate for revenues is pegged at $159,707 million, suggesting an increase of 4.5% from the prior-year quarter’s reported figure.
The company’s bottom line is likely to decline year over year in the fiscal second quarter. Although the Zacks Consensus Estimate for the bottom line has risen by a penny over the last seven days to $1.68 per share, the projection indicates a drop of 5.1% from the year-ago quarter’s earnings.
Walmart has a trailing four-quarter earnings surprise of 12%, on average. The supermarket giant delivered an earnings surprise of 11.4% in the last reported quarter.
Walmart has been gaining from its sturdy comp sales record, which in turn is driven by its constant expansion efforts and splendid e-commerce performance. The company has been undertaking several measures to enhance merchandise assortments. Also, it has been focused on store remodeling, in an attempt to upgrade them with advanced in-store and digital innovations.
We note that, Walmart has been benefiting from e-commerce business and omni-channel penetration. The company has been taking several digital initiatives, including buyouts, alliances, and improved delivery and payment systems. Additionally, management is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Walmart has taken robust strides to strengthen its delivery arm, as evident from its partnership with Salesforce; expansion of InHome delivery service; investment in DroneUp; pilot with HomeValet, introduction Carrier Pickup by FedEx and launch of Walmart+ membership program among others.
These upsides are likely to have aided sales in the quarter under review. For the second quarter, Walmart expects consolidated net sales growth of around 4% at constant currency or cc.
However, the company has been battling cost inflation, which is likely to remain elevated. An adverse product mix has also been a downside for margins. For the second quarter of fiscal 2024, the consolidated operating income is expected to decline about 2% at cc. The adjusted earnings per share (EPS) is likely to come in the range of $1.63-$1.68 compared with the year-ago period figure of $1.77.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time around. 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 carries a Zacks Rank #2 and has an Earnings ESP of +1.07%.
More Stocks With Favorable Combination
Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time around.
CASY is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for earnings is pinned at $3.39 per share, indicating a decline of 17.1% from the year-ago quarter’s number.
The company’s revenues are anticipated to decrease year over year. The consensus mark for the same stands at $3.85 billion, indicating a deterioration of 13.5% from that reported in the year-ago quarter. CASY has a trailing four-quarter average earnings surprise of 7.5%.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank of 2. LULU is likely to record top-line growth when it reports fiscal second-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $2.17 billion, indicating a 15.9% improvement from the prior-year quarter’s reported actual. The consensus mark for earnings stands at $2.52 per share, implying a 14.6% increase from that reported in the comparable period of 2022. LULU has a trailing four-quarter earnings surprise of 9.9% on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share over the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
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Factors to Note Before Walmart's (WMT) Q2 Earnings Results
Walmart Inc. (WMT - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2024 earnings on Aug 17. The Zacks Consensus Estimate for revenues is pegged at $159,707 million, suggesting an increase of 4.5% from the prior-year quarter’s reported figure.
The company’s bottom line is likely to decline year over year in the fiscal second quarter. Although the Zacks Consensus Estimate for the bottom line has risen by a penny over the last seven days to $1.68 per share, the projection indicates a drop of 5.1% from the year-ago quarter’s earnings.
Walmart has a trailing four-quarter earnings surprise of 12%, on average. The supermarket giant delivered an earnings surprise of 11.4% in the last reported quarter.
Walmart Inc. Price and EPS Surprise
Walmart Inc. price-eps-surprise | Walmart Inc. Quote
Things To Note
Walmart has been gaining from its sturdy comp sales record, which in turn is driven by its constant expansion efforts and splendid e-commerce performance. The company has been undertaking several measures to enhance merchandise assortments. Also, it has been focused on store remodeling, in an attempt to upgrade them with advanced in-store and digital innovations.
We note that, Walmart has been benefiting from e-commerce business and omni-channel penetration. The company has been taking several digital initiatives, including buyouts, alliances, and improved delivery and payment systems. Additionally, management is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Walmart has taken robust strides to strengthen its delivery arm, as evident from its partnership with Salesforce; expansion of InHome delivery service; investment in DroneUp; pilot with HomeValet, introduction Carrier Pickup by FedEx and launch of Walmart+ membership program among others.
These upsides are likely to have aided sales in the quarter under review. For the second quarter, Walmart expects consolidated net sales growth of around 4% at constant currency or cc.
However, the company has been battling cost inflation, which is likely to remain elevated. An adverse product mix has also been a downside for margins. For the second quarter of fiscal 2024, the consolidated operating income is expected to decline about 2% at cc. The adjusted earnings per share (EPS) is likely to come in the range of $1.63-$1.68 compared with the year-ago period figure of $1.77.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time around. 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 carries a Zacks Rank #2 and has an Earnings ESP of +1.07%.
More Stocks With Favorable Combination
Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time around.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CASY is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for earnings is pinned at $3.39 per share, indicating a decline of 17.1% from the year-ago quarter’s number.
The company’s revenues are anticipated to decrease year over year. The consensus mark for the same stands at $3.85 billion, indicating a deterioration of 13.5% from that reported in the year-ago quarter. CASY has a trailing four-quarter average earnings surprise of 7.5%.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank of 2. LULU is likely to record top-line growth when it reports fiscal second-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $2.17 billion, indicating a 15.9% improvement from the prior-year quarter’s reported actual. The consensus mark for earnings stands at $2.52 per share, implying a 14.6% increase from that reported in the comparable period of 2022. LULU has a trailing four-quarter earnings surprise of 9.9% on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share over the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.