Walmart Inc. (NYSE: WMT) has confirmed that it will release its fiscal Q3 2022 earnings on Tuesday, November 16, 2021, before the market open.
What to look for
The company has changed from a conventional brick-and-motor store into an omnichannel company. Its acquisition of Moosejaw, Bonobos, and Parcel and partnership with Goldman Sachs and Shopify and delivery programs such as Express Delivery and Walmart+ position the company to keep pace with the evolving retail industry to compete with the likes of Target and Amazon.
Earnings: Stockearning’s Estimated EPS for the upcoming quarter is $1.38 per share. Historical EPS Performance for the past 12 quarters shows that the company has topped estimates ten times (83%) and missed twice (16%). In the second quarter, the company reported an adjusted EPS of $1.78, and in fiscal Q3 2021, the company had an EPS of $1.34, topping estimates of $1.19 per share.
Revenue: The company expects revenue of $133.72 billion. In the past quarter, Walmart reported revenue of $141 billion, reflecting a 2.4% increase which was offset by $8.9 billion associated with divestures.US comp sales increased 5.2% while eCommerce sales were up 6% YoY.
Stock movement: Since the last earnings release, Walmart shares have lost 0.4%. Following the earnings release, the stock has been DOWN 26 times out of the last 47 quarters after earnings release. So, the historical price reaction suggests a 55% probability of the share price going DOWN once Walmart releases its Q3 2022 earnings results. According to the Stockearning algorithm, the predicted first-day move is 3%, while the expected move on the seventh day is 3%.
What analysts are saying
Goldman Sachs analysts Kate McShane added the stock into her Conviction List, maintained a "Buy" rating on Walmart shares following the recent underperformance, and raised the target price from $184 to $196. McShane said that Walmart is in a position to take share and perform profitably going into 2022. Following years in investment geared towards profitability, and the company is now in the mix with growth from high margin ancillary operations such as advertising, McShane believes the retailer was among the strongest stories during the Goldman Sachs 28th Annual Retail Conferences considering its improving potential to grow EBIT which will gain investor attention.
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