Walmart Inc. (WMT) is poised to announce its third-quarter fiscal 2024 earnings on November 16. Analysts anticipate a 4.2% surge in revenues, with the Zacks Consensus Estimate reaching $159.2 million.
The consensus estimate for quarterly earnings has increased by a penny in the last seven days, standing at $1.51 per share. This projects a 0.7% growth from the year-ago quarter. Notably, WMT has exceeded earnings expectations with an average trailing four-quarter surprise of 11.6%.
Walmart’s sturdy comparable sales narrative has been a driving force, underscored by consistent expansion strategies and remarkable e-commerce performance. The company has been actively bolstering its product offerings while prioritizing store renovations. In fact, 165 U.S. stores underwent remodeling in the preceding quarter. Moreover, Walmart’s effective pricing tactics and strength in U.S. Comp sales, especially in food, consumables, and healthcare categories, bode well for its performance.
Additionally, Walmart has capitalized on its robust e-commerce operations and omnichannel presence, advocating various digital measures, partnerships, and acquisitions. With a strong focus on the thriving online grocery space, Walmart has significantly enhanced its delivery capabilities, solidified by collaborations and the introduction of the Walmart+ membership program.
Despite these positive strides, concerns loom over the company’s high SG&A expenses, which surged year over year and weighed on its second-quarter performance. Walmart anticipates variable pay expenses to have escalated in the third quarter, projecting adjusted EPS in the range of $1.45-$1.50.
Zacks Model Prediction
The Zacks Rank #2 company has an Earnings ESP of +0.63%, cementing analysts’ forecast of an earnings beat. This signifies a favorable combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold).
Other Stocks with Strong Prospects
Costco Wholesale (COST) currently boasts an Earnings ESP of +4.26% and a Zacks Rank #2, indicating promising top-and-bottom-line results. The Zacks Consensus Estimate for Costco’s quarterly revenues suggests a nearly 6% upsurge from the prior-year quarter, with an estimated EPS increase of 10.7%.
Ross Stores (ROST) holds an Earnings ESP of +2.08% and a Zacks Rank #2. The company is expected to witness growth in third-quarter fiscal 2023 results, with a projected revenue increase of 5.8% and an EPS surge of 21%.
Kohl’s Corporation (KSS) currently displays an Earnings ESP of +3.46% and a Zacks Rank of 3, signaling potential decreases in the top and bottom lines when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Kohl’s quarterly revenues suggests a decline of roughly 4%, and a 57.3% dip in the EPS.
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