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Factors Setting the Tone for Walmart's (WMT) Q3 Earnings
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Walmart Inc. (WMT - Free Report) is scheduled to release third-quarter fiscal 2020 results on Nov 14. This supermarket giant delivered a positive earnings surprise of 4.1% in the last reported quarter. Also, its earnings outperformed the Zacks Consensus Estimate by 6.7% on average in the trailing four quarters.
The Zacks Consensus Estimate for third-quarter earnings has been stable over the past 30 days at $1.09 per share. This suggests an increase of 0.9% from the year-ago period’s reported figure. The consensus mark for revenues is close to $129 billion, indicating a rise of 3.3% from the figure reported in the year-ago quarter.
Walmart’s comparable store sales (comps) have been benefiting from robust store enhancement and e-commerce endeavors. To this end, the big-box retailer has been making several efforts to enhance merchandise assortments. Also, the company is focusing on store remodeling, in order to upgrade those with digital and other advanced innovation.
On the e-commerce front, Walmart has been gaining from buyouts and alliances. The company’s 77% stake in Flipkart has been aiding the top line, though costs associated with the same have been weighing on its operating income and bottom line. Some other noteworthy acquisitions like ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com have been aiding Walmart.
Also, the company’s focus on boosting online grocery shopping by offering easy shopping methods and seamless grocery deliveries has been driving e-commerce sales to a large extent. In this regard, the deal with Postmates, the buyout of Parcel and alliance with Point Pickup, Skipcart, AxleHire and Roadie bode well. Apart from these, Walmart’s comps have been gaining from a compelling pricing strategy, which however has been weighing on margins. Additionally, the company’s margins have been under pressure due to costs associated with e-commerce investments and technological advancements, and the growing e-commerce mix.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Walmart has an Earnings ESP of +0.75% and a Zacks Rank #2.
Other Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Lowe’s Companies (LOW - Free Report) has an Earnings ESP of +1.62% and a Zacks Rank #2.
Foot Locker (FL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
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Factors Setting the Tone for Walmart's (WMT) Q3 Earnings
Walmart Inc. (WMT - Free Report) is scheduled to release third-quarter fiscal 2020 results on Nov 14. This supermarket giant delivered a positive earnings surprise of 4.1% in the last reported quarter. Also, its earnings outperformed the Zacks Consensus Estimate by 6.7% on average in the trailing four quarters.
The Zacks Consensus Estimate for third-quarter earnings has been stable over the past 30 days at $1.09 per share. This suggests an increase of 0.9% from the year-ago period’s reported figure. The consensus mark for revenues is close to $129 billion, indicating a rise of 3.3% from the figure reported in the year-ago quarter.
Walmart Inc. Price and EPS Surprise
Walmart Inc. price-eps-surprise | Walmart Inc. Quote
Key Factors to Note
Walmart’s comparable store sales (comps) have been benefiting from robust store enhancement and e-commerce endeavors. To this end, the big-box retailer has been making several efforts to enhance merchandise assortments. Also, the company is focusing on store remodeling, in order to upgrade those with digital and other advanced innovation.
On the e-commerce front, Walmart has been gaining from buyouts and alliances. The company’s 77% stake in Flipkart has been aiding the top line, though costs associated with the same have been weighing on its operating income and bottom line. Some other noteworthy acquisitions like ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com have been aiding Walmart.
Also, the company’s focus on boosting online grocery shopping by offering easy shopping methods and seamless grocery deliveries has been driving e-commerce sales to a large extent. In this regard, the deal with Postmates, the buyout of Parcel and alliance with Point Pickup, Skipcart, AxleHire and Roadie bode well. Apart from these, Walmart’s comps have been gaining from a compelling pricing strategy, which however has been weighing on margins. Additionally, the company’s margins have been under pressure due to costs associated with e-commerce investments and technological advancements, and the growing e-commerce mix.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Walmart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Walmart has an Earnings ESP of +0.75% and a Zacks Rank #2.
Other Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Dollar General (DG - Free Report) has an Earnings ESP of +2.34% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lowe’s Companies (LOW - Free Report) has an Earnings ESP of +1.62% and a Zacks Rank #2.
Foot Locker (FL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>