synopsis

Wall Street expects Walmart’s revenue to rise 2.8% in Q1, while profit is expected to drop.

Several Wall Street analysts have put out reassuring commentary for Walmart (WMT) ahead of the department store chain's quarterly results on Thursday.

The brokerages broadly said that Walmart is well-placed to weather the impact of tariffs because of its scale, deep relationships with consumers and suppliers, and the capacity to adjust prices and product mix.

UBS said Walmart's first-quarter report will highlight its comparable sales momentum, though earnings per share may be modestly pressured due to a $200 million casualty claim expense.

In April, Walmart impressed investors by maintaining its annual forecast, although it said the company was experiencing higher costs related to casualty and accident claims, which could affect its operating income.

Morgan Stanley said the company's advantages in scale, supply chain efficiency, category mix, and pricing make it one of the best retailers for managing tariff-related challenges.

The investment firm also noted its optimistic view on grocery demand and Walmart+ membership take rates.

Bank of America said Walmart has the "potential" for continued gross margin expansion as it gains market share due to a "significant" digital and omnichannel transformation.

To be sure, the analyst commentary is from before the U.S. announced a trade deal with China, which is set to significantly ease the situation for several businesses in the U.S., especially retail companies.

Washington and Beijing agreed on a 90-day suspension of reciprocal duties following their talks in Switzerland over the weekend.

Analysts expect Walmart's first-quarter revenue to have risen 2.8% to $164.5 billion, according to Koyfin data.

They expect an adjusted profit of $0.58 per share, compared to $0.60 in the same quarter last year.

On Stocktwits, the retail sentiment for Walmart rose to 'bullish' from 'bearish' the previous day, and message volume jumped to 'high.'

A user, who claims to work at a Walmart in Missouri, said that that particular store saw 5% increase in sales last quarter after strong business in April.

Walmart shares have climbed about 20% from this low this year and are near an all-time high of $104.51.

In total, shares are up 7.1% this year to $96.75.

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