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November 18, 2024

Walmart’s Upcoming Earnings Report: A Glimpse into Fiscal Q3 2025 Performance

  • Walmart (NYSE:WMT) is expected to report an EPS of $0.53 and revenue of $167.6 billion for Q3 2025.
  • The company’s operating income is anticipated to grow by 8.6% year-over-year, reaching $6.56 billion.
  • Walmart’s stock has surged by 60.6% year-to-date, outperforming major indexes and competitors.

Walmart (NYSE:WMT) is preparing to release its quarterly earnings for the third quarter of fiscal 2025 on Tuesday, November 19, 2024, before the market opens. Analysts expect the earnings per share (EPS) to be $0.53, with projected revenue of approximately $167.6 billion. This earnings report is highly anticipated as it will provide insights into Walmart’s financial health and market performance.

Analysts are optimistic about Walmart’s performance, forecasting a revenue of $167.7 billion, which marks a 4.3% year-over-year growth. The company’s operating income is expected to reach $6.56 billion, reflecting an 8.6% increase from the previous year. This growth is attributed to Walmart’s expanding customer base across various income levels and its increasing market share in different income brackets.

Despite the stock’s current overbought status, which suggests a potential 10-15% pullback, Walmart’s ongoing improvement in its US operating margin is seen as a significant advantage for shareholders. The company’s digital advertising business is also contributing to its overall profit margins, enhancing its profitability as highlighted by Bank of America analysts.

The sentiment among analysts is largely positive, with 22 out of 23 analysts tracked by Visible Alpha rating Walmart’s stock as a “buy.” The average target price for Walmart’s stock is approximately $86.43. Investors are keen to see if Walmart can sustain its impressive performance momentum, especially after a beat-and-raise quarterly report on August 15th.

Walmart shares have been exceptional performers this year, significantly outpacing the broader market indexes and competitors like Target (TGT) and Amazon (AMZN). Year-to-date, Walmart shares have surged by 60.6%, compared to the S&P 500 index’s 25.1% increase, Amazon’s 33.8% rise, and Target’s 7.8% growth. This strong performance is reflected in Walmart’s financial metrics, such as a price-to-earnings (P/E) ratio of approximately 43.58 and a price-to-sales ratio of about 1.02.

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