What Analysts Think of Walmart's Stock Ahead of Earnings
Key Takeaways
Walmart (
WMT
) is slated to report earnings before the market opens Tuesday for the third quarter of fiscal 2025, with analysts expecting improving sales as Walmart continues to expand its customer base across income levels.
Analysts are bullish on the retail giant's stock, with 22 of the 23 analysts covering Walmart tracked by Visible Alpha
rating the stock
as a "buy" and just one analyst calling it a "hold." However, some analysts may be waiting for the results of Walmart's latest quarter to adjust their outlook on the stock's future: The average
target price
of $86.43 is roughly 3% above Friday's close.
Walmart is projected to report quartelry
revenue
at $167.73 billion, up from $160.8 billion at the same time last year. The retailer is expected to post
net income
of $4.24 billion, up from $453 million last year, when its profits were hit by negative changes to the value of some of its investments.
Walmart's adjusted profits are expected to rise to $4.26 billion from $4.13 billion in the second quarter.
Gains Across Income Levels, Advertising Revenue in Focus
Bank of America analysts wrote recently that they see Walmart's market share
gains across income levels
continuing in the latest quarter.
Melius Research analysts said that's because of the retailer's "concerted effort" in recent years to prepare for a "pressured macroeconomic environment" in which it
could win customers
from dollar-store rivals with smaller packaging and lower prices, while also investing in convenience features like faster delivery for Walmart+ members.
The Bank of America analysts also said that advertising revenue is a key part of Walmart's business, as its high profit margins can help improve the company's overall profits.