Walmart's Q2 2024 Earnings Exceed Estimates, Management Guides Higher

Wells Fargo's Edward Kelly raised their price target on Walmart (NYSE: WMT) by 2.9% from $175 to $180 on August 18, 2023. The analyst maintained their Strong Buy rating on the stock.

Kelly's view of Walmart's Q2 2024 earnings was described as "thesis-confirming" and he noted that the earnings came in "a touch ahead of high expectations." Despite some positioning dampening the reaction, Kelly believes that Walmart's momentum remains strong and the multi-year outlook is robust. Additionally, he stated that management's guidance appears conservative.

In Q2 2024, Walmart reported earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.69 and surpassing Q2 2023's $1.77 by 4%. The company also reported revenue of $161.6 billion, beating 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, including projected revenue growth of 3% on a constant currency basis and expected EPS of $1.45 to $1.50. For the full fiscal year 2024, the company anticipates revenue growth of 4% to 4.5% on a constant currency basis, up from the previous guidance of 3.5%. Additionally, Walmart raised its EPS guidance to $6.36 to $6.46, up from the prior range of $6.10 to $6.20.

President and CEO Doug McMillon expressed optimism about Walmart's performance, stating, "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.”

In addition to Edward Kelly's rating and price target update, other analysts also provided their assessments of Walmart on August 18, 2023. Raymond James's Bobby Griffin raised their price target by 6.3% from $160 and maintained their Buy rating on the stock. Truist Securities's Scot Ciccarelli increased their price target by 1.2% from $166 and maintained a Hold rating. Bernstein's Dean Rosenblum raised their price target by 3.8% from $159 and also maintained a Hold rating.

According to WallStreetZen, 84.2% of top-rated analysts currently rate WMT as a Strong Buy or Buy, while 15.8% consider it a Hold. No analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts predicts that Walmart's upcoming year will deliver earnings per share (EPS) of $5.08. If the analysts' predictions hold true, Walmart's next yearly EPS will increase by 22.5% compared to the previous year.

Year-over-year, Walmart's stock has gained 11.6%. During this period, Walmart has outperformed the S&P 500, which has risen by 2.2%.

Wells Fargo analyst Edward Kelly, who raised the price target on Walmart, is ranked in the top 6% of Wall Street analysts by WallStreetZen. With an average return of 17.3% and a win rate of 57.8%, Kelly specializes in the Consumer Cyclical and Consumer Defensive sectors.

Walmart Incorporated operates various retail, wholesale, and other units in the U.S. and internationally through its three segments: Walmart U.S., Walmart International, and Sam's Club. The company operates a wide range of stores, 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.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.