Abdelrahman
Essential Insights
- Walmart is set to release its fourth quarter earnings report before the market opens on Thursday, with expected increases in sales and profits.
- According to Visible Alpha, the majority of analysts monitoring Walmart have assigned a “buy” rating to the stock, although their average price target indicates limited potential for growth from Wednesday’s closing price, which is near record highs.
- Several analysts have recently suggested that Walmart is likely to exceed fourth-quarter expectations, but they anticipate that the retailer’s guidance for the upcoming fiscal year will be conservative.
Walmart (WMT) is poised to announce its fiscal 2025 fourth quarter earnings on Thursday morning, with expectations of increased sales and profits from the nation’s largest retailer.
Out of 21 analysts covering Walmart, 20 maintain a “buy” or similar rating, while the average price target of $109 suggests only limited upside from the closing price of $104 on Wednesday, which is close to last week’s record high.
For the quarter, the retail giant is anticipated to report revenues of approximately $180.3 billion, reflecting an almost 4% year-over-year increase. Analysts expect adjusted earnings per share (EPS) of 64 cents, marking a 7% rise compared to the same quarter last year. If Walmart meets these estimates, it could represent the first instance of its quarterly revenue being less than that of Amazon (AMZN), which announced $187.8 billion earlier this month.
Market Analysts Predict Strong Q4 Performance with Conservative Outlook
A number of financial analysts have recently raised their price targets for Walmart, citing an expectation for the retailer to continue capturing market share and exceeding their profit forecasts.
Analysts from Morgan Stanley and Deutsche Bank have both boosted their forecasts to $115, while those from JPMorgan and Bank of America have increased theirs to $112 and $120, respectively.
Analysts from Melius Research expressed last month that they anticipate Walmart to “significantly outperform” fourth-quarter predictions, although they noted a potential concern regarding the high expectations from the market. Furthermore, both Melius and Morgan Stanley analysts believe Walmart will remain conservative in its initial guidance for fiscal 2026, but they expect the retailer’s stock to continue to appreciate this year.
“In light of heightened uncertainties surrounding tariff and deportation policies, the market is shifting towards quality and scale, seeking out companies poised to gain market share that can navigate these potential challenges through their bargaining power and advanced, automated supply chains,” stated analysts from Morgan Stanley.
Over the past year, Walmart shares have surged nearly 80%, and on Wednesday, their value was $104, just shy of last Thursday’s record closing price of $105.05.
UPDATE—Feb. 19, 2025: This article has been revised to include the latest analyst projections and stock price updates.
