Walmart Q2 2024 Results Show Broad Market Gains and Automation Success, says KeyBanc

KeyBanc's Bradley Thomas raised their price target on Walmart (NYSE: WMT) by 1.1% from $175 to $177 on 2023/08/18. The analyst maintained their Strong Buy rating on the stock.

Thomas's bullish take on Walmart's Q2 2024 results, reported 2023/08/147, was that the print "demonstrated broad market gains, momentum in key growth initiatives, and favorable early results in the company's automation initiative." According to the analyst, KeyBanc believes Walmart is well-positioned for continued and long-term market share gains as it benefits from growth initiatives and the automation of its supply chain.

For Q2 2024, Walmart reported earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.69 and Q2 2023's $1.77 by 4%. The company also reported revenue of $161.6 billion, surpassing the Zacks Consensus Estimate of $159.8 billion and Q2 2023's $152.9 billion by 5.7%.

Looking ahead, Walmart's management provided guidance for Q3 2024 and FY 2024. For Q3 2024, the company expects revenue growth of 3% on a constant currency basis and EPS of $1.45 to $1.50. For FY 2024, Walmart anticipates revenue growth of 4% to 4.5% on a constant currency basis, up from the prior guidance of 3.5%. The company also raised its EPS guidance to $6.36 to $6.46, compared to the previous range of $6.10 to $6.20.

In response to the earnings report, Walmart's President & CEO Doug McMillon commented, "Around the world, our customers and members are prioritizing value and convenience. They're shopping with us across channels — in stores, Sam's Clubs, and they're driving eCommerce, which was up 24% globally. Food is a strength, but we're also encouraged by our results in general merchandise versus our expectations when we started the quarter. We're in good shape with inventory, and we like our position for the back half of the year."

Aside from KeyBanc's Bradley Thomas, other analysts also updated their ratings and price targets for Walmart on August 18, 2023. Raymond James's Bobby Griffin raised their price target by 6.3% to $160 and maintained their Buy rating on the stock. Truist Securities's Scot Ciccarelli raised their price target by 1.2% to $166 and maintained their Hold rating. Bernstein's Dean Rosenblum raised their price target by 3.8% to $159 and maintained their Hold rating.

Currently, 84.2% of top-rated analysts consider WMT a Strong Buy or Buy, while 15.8% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

According to the consensus forecast among analysts, WMT is expected to deliver earnings per share (EPS) of $5.08 in the upcoming year. If the analysts' predictions hold true, WMT's next yearly EPS will be up by 22.5% on a year-over-year basis.

In terms of performance, WMT's stock has seen a year-over-year increase of 11.6%, outpacing the S&P 500's 2.2% growth during the same period.

KeyBanc analyst Bradley Thomas is highly regarded by WallStreetZen, ranking in the top 2% out of 4,300 Wall Street analysts. With an average return of 18.3% and a 58.5% win rate, Thomas specializes in the Technology and Consumer Defensive sectors, among others.

Walmart Incorporated operates through three segments: Walmart U.S., Walmart International, and Sam's Club. The company encompasses various retail formats, including supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, membership-only warehouse clubs, and ecommerce websites. Founded in 1945, Walmart is headquartered in Bentonville, AR.

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