Walmart Earnings Ahead: Can WMT Stock Sustain Momentum Under New CEO?

A new CEO, hitting $1 trillion for the first and an uncertain economy put the focus on the retail behemoth’s earnings.

• Walmart is expected to post a fourth-quarter revenue of $188.43 billion, a 10.2% jump from a year ago, according to data from Fiscal AI.
• Doug McMillon has been succeeded by the retailer’s U.S. unit CEO, John Furner, effective Feb.1.
• In early February, just a couple of days after the new CEO took office, Walmart’s stock market capitalization crossed the $1 trillion mark for the first time.

Walmart’s earnings are in focus as investors and retail traders are watching for comments from new CEO John Furner about consumer health and the company’s artificial intelligence and tech-powered growth.

One of retail’s most-awaited earnings is from Walmart, as investors get a better idea regarding consumption patterns as well as the impact of U.S. President Donald Trump’s tariffs on global trading partners.

Wall Street notes that Walmart is well-positioned to maintain growth even during a slowdown in consumer spending, as a majority of its sales come from groceries and essentials, unlike other retailers such as Target.

Wall Street’s WMT Expectation

Walmart is expected to post a fourth-quarter revenue of $188.43 billion, a 10.2% jump from a year ago, and analysts estimate the retailer to post an earnings per share of $0.73, compared to $0.66 a year earlier, according to data from Fiscal AI.

Rothschild & Co Redburn on Tuesday raised the firm's price target on Walmart to $150 from $110 and maintained a ‘Buy’ rating, according to TheFly. The firm said it expects Walmart's digital opportunities to drive 14% annual earnings growth through 2028.

The company has "multiple levers" to deliver this growth while its AI opportunities can drive incremental upside, Rothschild & Co Redburn said.

Furner, who has served as President and CEO of Walmart U.S. since 2019, has led the company’s largest operating segment, comprising more than 4,600 stores. He has closely worked with McMillon, and Wall Street has bet on his experience to lead the company.

Walmart’s Trillion Dollar Entry

In early February, just a couple of days after the new CEO took office, Walmart’s stock hit a major financial milestone, with its market capitalization climbing above $1 trillion for the first time.

Walmart has been working to boost digital capabilities, improve delivery speeds, and expand its e-commerce offerings in an attempt to drive customers across all income cohorts to its stores.

What Is Retail Thinking?

Retail sentiment on Walmart was in the ‘bearish’ territory compared to ‘neutral’ a week ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

A user on Stocktwits noted that they were turning “bullish” on Walmart.

Shares of Walmart have gained nearly 24% in the last 12 months.

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