- Walmart is scheduled to report third-quarter results on Thursday.
- Investors expect the retailer’s revenue and earnings to increase year-over-year.
- The discounter has fared better than other retailers thanks to its low-price reputation and big-box grocery stores.
A Walmart store selling gardening supplies in Atchison, Kansas.
UCG | Universal Images Group | Getty Images
Walmart has generally outperformed its competitors and is scheduled to report quarterly results on Thursday.
Here’s what Wall Street expects from retailers, according to LSEG (formerly Refinitiv) consensus estimates.
- Earnings per share: Forecast of $1.52
- Revenue: Expected to be $159.72 billion.
Investors are betting big retailers have the ingredients to boost sales even as shoppers become more discerning as the holiday season approaches. This is the largest grocery store in the country and contributes to a steady increase in customer traffic.
Walmart has invested in its e-commerce business by expanding its assortment through third-party marketplaces. The company also makes money in newer ways, such as advertising and selling annual memberships to Walmart+, its answer to Amazon Prime.
The company’s stock hit its highest Wednesday since Wal-Mart went public on the New York Stock Exchange in August 1972. Shares closed Wednesday near $170, up about 19% for the year.
Target’s results also boosted Walmart’s stock price on Wednesday, which could bode well for Walmart’s quarter. Target’s sales were down year-over-year, but its revenue and earnings beat Wall Street expectations.
Walmart has outperformed Target over the past year, relying on its grocery sales and reputation for low prices.
Michael Baker, a retail analyst at DA Davidson, said Walmart gained market share because it hit a sweet spot of stocking heavier essentials and building a reputation for value.
However, he added that it could be at risk as it will announce earnings again.
“My concern is, ‘Have expectations gotten too high?'” he said.