Key Stats for Walmart Stock
- Price Change for $WMT stock: -4%
- Current Share Price: $98
- 52-Week High: $105
- $WMT Stock Price Target: $111
What Happened?
Walmart (WMT) stock fell over 4% on Thursday despite raising its full-year sales and earnings guidance, marking the first time the retail giant missed quarterly earnings expectations since May 2022.
The company reported adjusted earnings per share of $0.68 versus the $0.74 expected, while revenue of $175.75 billion topped the $174.38 billion consensus estimate.
The earnings miss was attributed to several cost pressures, including higher insurance claims, legal settlements, and restructuring expenses.
CFO John David Rainey noted that Walmart absorbed $450 million in additional general liability and workers’ compensation claims costs, representing a 560 basis point headwind to operating income growth for the quarter.
Despite the earnings shortfall, Walmart demonstrated strong operational momentum with e-commerce sales surging 25% globally and 26% in the U.S.
The company raised its full-year net sales growth outlook to 3.75%-4.75% from the previous 3%-4% range, while slightly increasing its adjusted EPS guidance to $2.52-$2.62 per share.
See analysts’ growth forecasts and price targets for Walmart stock (It’s free!) >>>
What the Market Is Telling Us About WMT Stock
The WMT stock decline reflects investor concern about rising cost pressures from tariffs and unexpected expenses, even as the core business continues to gain market share.
CEO Doug McMillon acknowledged that middle- and lower-income households are showing sensitivity to tariff-related price increases, particularly in discretionary categories, leading to unit volume moderation as customers switch to other items.
However, the underlying business fundamentals remain strong. Walmart U.S. comparable sales grew 4.6% excluding fuel, ahead of the 4% expectation, while Sam’s Club posted 5.9% comparable sales growth.
Its e-commerce profitability doubled from the prior quarter, and its global advertising business expanded 46% year-over-year, demonstrating the success of its higher-margin business transformation.
The market appears to be weighing near-term margin pressure against Walmart’s continued market share gains and e-commerce momentum.
With inventory up modestly and Walmart maintaining aggressive pricing through 7,400 rollbacks (up 2,000 from last quarter), WMT stock is positioned to benefit from its scale advantages during this period of economic uncertainty.
The higher guidance for both sales and earnings suggests management confidence in navigating the challenging operating environment while continuing to invest for long-term growth.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
