Walmart’s Upcoming Earnings Turn Wall Street Bullish

(CTN News) – Walmart is expected to report its fiscal Q1 results on Thursday.

According to a Deutsche Bank analyst, the retailer is expected to exceed expectations.

Due to its discount pricing model, WalMart is poised to benefit from a weaker consumer spending environment.

This week’s Q1 earnings parade focuses on retailers. WalMart will announce its quarterly results on Thursday, and Wall Street is optimistic. Year-to-date,  a dividend-paying stock, has gained approximately 8%.

Walmart’s Q1 outlook calls for earnings per share to be in the range of $1.25-$1.30. Jefferies is expecting earnings per share to be $1.34. FactSet estimates earnings per share to be $1.31.

etail pack. According to analyst Krisztina Katai, WalMart is her top pick due to its “sales momentum and ability to grow EBIT margins over time.”

As a result, Katai expects and its Sam’s Club subsidiary to outperform expectations. As a result, the analyst has increased her estimates for same-store sales growth to 6%, up from a previous estimate of 5.5%, and for Sam’s Club to 8.5%, up from a previous estimate of 6.8%.

Walmart is expected to report an increase of 5.4% in same-store sales over the course of the year based on FactSet’s estimate.

The retail per share of $5.90 to $6.05.

Deutsch Bank’s bullish outlook

The big-box retailer was named the retail leader by Deutsche Bank, according to CNBC. As a result of its “sales momentum and ability to grow EBIT margin over the long term,” Krisztina Katai selected as her “top pick.”

Katai also expects Sam’s Club to perform better than anticipated, in addition to WalMart. The analyst has increased her estimates for same-store sales growth to 6% from a previous estimate of 5.5%, as well as for Sam’s Club to 8.5% from a previous estimate of 6.8%.

According to FactSet, Walmart’s same-store sales will increase 5.4% this year.

Retailers have been able to keep inventories under control, and food inflation appears to be decreasing. Additionally, WalMart stands to benefit from the uncertainty in the economy as consumers seek out discount pricing for essential items. According to Bank of America data, credit card spending dropped 1.2% last month over the same period last year.

According to Katai, management may increase their full-year earnings forecast to align more closely with consensus estimates of $6.05 to $6.15 per share. WalMart currently expects EPS for the full year to range from $5.90 to $6.05.

Retail earnings are expected to increase

WalMart is not the only retailer scheduled to report its quarterly results. Target, Home Depot, and Lowe’s will also do so. As a result of economic headwinds, analysts are more cautious about upcoming results for home-improvement retailers.

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