News

Walmart Inc. WMT is likely to register top and bottom-line growth when it reports third-quarter fiscal 2025 earnings on Nov. 19. The Zacks Consensus Estimate for revenues is pegged at $167.5 billion, implying a 4.2% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 53 cents per share, indicating 3.9% growth from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of 6.9%, on average.

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Factors Likely to Fuel WMT’s Upcoming Results

Walmart’s third-quarter results are set to shed light on how the retail giant is navigating the current economic environment, characterized by inflationary pressures and evolving consumer spending habits. The company’s robust omnichannel capabilities and focus on value pricing are likely to have played a pivotal role in maintaining its appeal to budget-conscious shoppers. The integration of online and offline services, including in-store pickup, same-day delivery and ship-from-store options, is expected to have driven sales and deepen customer loyalty.

Rising store and club sales, expanding e-commerce, increased pickup options and accelerated delivery services have been driving the omnichannel retailer’s growth. The Zacks Consensus Estimate for third-quarter net sales for Sam’s Club stands at $22,848.6 million compared with $21,998 million reported in the year-ago period.

Newer ventures like the marketplace, advertising and membership have also been contributing to diversified profits. The consensus mark for Membership and other revenues for the third quarter is currently pegged at $1,479.1 million, indicating an increase from the $1,365 million recorded in the year-ago period.

These upsides, along with strength in the International division, are likely to aid third-quarter results. The Zacks Consensus Estimate for Walmart International sales stands at $29,599.7 million compared with $28,022 million reported in the year-ago period.

Walmart Inc. Price, Consensus and EPS Surprise

Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote

Challenges Expected in WMT’s Q3 Release

However, key challenges remain. While Walmart remains focused on executing its strategy and serving customers, the broader economic and geopolitical environment is more unpredictable than usual. Given these uncertainties, the company projects third-quarter sales growth between 3.25% and 4.25%, operating income growth of 3% to 4.5% and earnings per share (EPS) of 51 to 52 cents. These modest growth targets reflect the cautious approach to the volatile backdrop.

Two factors are expected to have put additional pressure on the third-quarter operating income. First, the timing of international festive events could impact sales and profits, making year-over-year comparisons less favorable. Second, planned expenses are more heavily weighted in the third quarter, straining profitability and growth in this quarter compared to the fourth quarter.

Earnings Whispers for WMT

Our proven model predicts an earnings beat for Walmart this time. 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, which is the case here.

Walmart carries a Zacks Rank #3 and has an Earnings ESP of +1.44%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time.

Best Buy BBY currently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for BBY’s quarterly revenues is pegged at $9.63 billion, which indicates a 1.3% dip from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, the company is likely to register bottom-line growth when it reports third-quarter fiscal 2025 results. The consensus estimate for Best Buy’s earnings is pegged at $1.30 per share, calling for 0.8% growth from the year-ago quarter. BBY has a trailing four-quarter earnings surprise of 11.4%, on average.

Casey's General Stores CASY currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.

Dollar Tree DLTR has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.45 billion, which indicates 1.9% growth from the figure reported in the prior-year quarter.

The consensus estimate for Dollar Tree’s quarterly earnings has risen by 1 cent over the past 30 days to $1.07 per share. The figure calls for growth of 10.3% from the year-ago quarter’s number. DLTR delivered an average negative earnings surprise of 10.9% in the trailing four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.