Business
Walmart Anticipates Growth in Third-Quarter Earnings for Fiscal 2025
Walmart Inc., the American multinational retail corporation, is due to release its earnings report for the third quarter of fiscal year 2025 before the stock market opens on Tuesday. Industry analysts are optimistic about an increase in sales, attributed to the company’s expanding customer base across various income levels.
According to data from Visible Alpha, a significant majority of analysts are recommending Walmart’s stock as a “buy.” Of the 23 analysts monitored, 22 have maintained a positive stance, while only one has classified the stock as a “hold.” Despite the current bullish sentiment, analysts might revise their projections following the company’s earnings announcement. The current average price target of $86.43 is approximately 3% higher than the stock’s closing price last Friday.
Financial projections for Walmart indicate the company will report quarterly revenue of $167.73 billion, marking an increase from last year’s $160.8 billion for the same period. The company is also anticipated to report net earnings of $4.24 billion, showing a substantial rise from the $453 million recorded the previous year. Last year’s profits were adversely affected by depreciations in the value of certain investments.
Adjusted profits are expected to reach $4.26 billion, up from $4.13 billion in the second quarter of this fiscal year. Analysts at Bank of America have recently expressed confidence in Walmart’s ability to increase its market share in the upcoming quarter.
Melius Research analysts have attributed Walmart’s projected success to its strategic measures in response to a «pressured macroeconomic environment.» The retailer has reportedly differentiated itself from competitors, such as dollar-store chains, by offering products in smaller packages at lower prices. Furthermore, Walmart has invested in enhancing convenience features, including faster delivery options for members of its Walmart+ subscription service.
Advertising revenue is also considered a critical component of Walmart’s business model, contributing significantly to its profit margins and overall profitability, according to Bank of America analysts.
Walmart’s stock has appreciated by approximately 60% year-to-date, reflecting growing investor confidence in the company’s business strategies.