Earnings Alerts

Walmart (WMT) Earnings Lag Behind 3Q Forecasts but Beat Revenue Estimates

  • Walmart‘s 3rd quarter adjusted EPS forecast is between 51c and 52c, missing the estimate of 55c.
  • Sales for the 3rd quarter are expected to increase by 3.25% to 4.25%.
  • For the full year 2025, adjusted EPS is forecasted between $2.35 and $2.43, slightly below the estimate of $2.45.
  • Net sales for 2025 are expected to rise by 3.75% to 4.75%.
  • In the second quarter:
    • Total US comparable sales excluding gas were up by 4.3%, beating the estimate of 3.41%.
    • Walmart-only US stores saw comparable sales excluding gas rise by 4.2%, above the 3.43% estimate.
    • Sam’s Club US comparable sales excluding gas surged by 5.2%, outperforming the estimate of 3.9%.
    • Adjusted EPS was 67c, higher than the estimate of 65c.
    • Revenue reached $169.34 billion, a 4.8% year-over-year increase, surpassing the estimate of $168.46 billion.
    • Sam’s Club e-commerce sales jumped 22%, above the 19% estimate.
    • Adjusted operating income was $7.9 billion, exceeding the estimate of $7.76 billion.
  • Global eCommerce sales grew by 21%, driven by store-fulfilled pickup, delivery, and marketplace.
  • Walmart‘s CEO noted that all parts of the business are growing, with increasing store and club sales and rapid eCommerce growth fueled by faster delivery speeds.

Walmart on Smartkarma



Analyst coverage of Walmart on Smartkarma showcases positive sentiment from Baptista Research. In a report titled “Walmart Inc.: Growth in Newer Businesses and E-commerce,” the analysts highlight Walmart‘s strong performance in sales growth of 5.7% and adjusted operating profit up 12.9% in constant currency. The report emphasizes the momentum driven by increases in units sold, transaction counts, and market share gains, especially in general merchandise.

Another report by Baptista Research, titled “Walmart Inc.: Robust Technology Adoption For Operational Efficiency & 5 Other Major Drivers,” praises Walmart‘s sales growth of 4.9% and adjusted operating profit growth of 10.9% in constant currency. The analysts note key drivers such as higher transaction counts, market share gains in the U.S and internationally, improved in-stock levels, and strong customer experience scores. A significant milestone highlighted is Walmart surpassing $100 billion in global eCommerce sales for the first time.



A look at Walmart Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Walmart‘s long-term outlook appears promising. The company scores high in momentum, indicating strong market performance and positive investor sentiment. Additionally, Walmart shows significant growth potential with a score of 4, reflecting future earnings and revenue expansion. Its resilience score of 3 suggests the company’s ability to withstand economic downturns and external challenges. While the value and dividend scores are moderate, the overall outlook for Walmart seems favorable for long-term investors.

Walmart Inc. is a global retail giant operating various types of stores. From discount stores to supercenters and neighborhood markets, Walmart provides a wide range of merchandise, including electronics, apparel, household essentials, and pharmaceutical products. With its widespread presence and diverse product offerings, Walmart caters to customers worldwide, positioning itself as a leading player in the retail industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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