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Walmart (WMT) to Post Q3 Earnings: Online to Remain a Driver
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Walmart Inc.’s (WMT - Free Report) third-quarter fiscal 2021 results, slated to release on Nov 17, are likely to continue reflecting strength in e-commerce sales, especially due to consumers’ increased online shopping amid the pandemic-led social distancing. Notably, Walmart’s e-commerce sales have been surging year over year for a while now.
Walmart has been benefiting from consumers’ increased demand for essential items amid the coronavirus pandemic. Further, increased stay-at-home trends to maintain social distance have led to an accelerated shift to online shopping. Certainly, Walmart’s robust efforts to enhance delivery bode well in this regard. In connection with this, the company’s recently unveiled Walmart+ program (in September) is likely to have yielded results. The program includes unlimited free delivery, Scan & Go options and discount offers.
Additionally, the company has been gaining from its Express Delivery service (introduced in the first quarter of fiscal 2021), through which many items from its stores can be delivered to customers in less than two hours. The service has been expanded to more than 2,800 stores, which are accessible to more than 65% of U.S. households. Apart from this, its Walmart Pickup program enables customers to place orders online and then pick them up from a store for free.
Clearly, Walmart has been pushing all limits to boost its omnichannel operations and step up delivery services to meet customers’ growing needs. We note that these efforts become all the more relevant in the current scenario where social distancing has taken online shopping to a higher level. Even other retailers like Target (TGT - Free Report) and Kroger (KR - Free Report) are gaining from their concerted endeavors to boost delivery services. Apart from strengthening its delivery arm, Walmart has been undertaking other efforts to enhance its e-commerce business for quite some time. The company’s alliances with Shopify and Green Dot and buyouts of ShoeBuy, Moosejaw and Bonobos, among others, underscore its intention to build an impressive digital brand portfolio. Further, the buyout of a major stake in Flipkart has been bolstering its e-commerce sales.
Such efforts have been driving Walmart’s e-commerce business and helping it stay firm amid the growing competition from Amazon (AMZN - Free Report) . Notably, Walmart’s U.S. e-commerce sales surged a whopping 97% in the second quarter with strength across all channels. On its last earnings call, management informed that the company’s stores and online merchant teams have been integrated, which is likely to have boosted the performance.
Encouragingly, the Zacks Consensus Estimate for Walmart’s third-quarter revenues is pegged at $132.8 billion, indicating a rise of 3.8% from the figure reported in the year-ago quarter. The consensus mark for earnings has risen by a cent over the past seven days to $1.19 per share. This suggests an increase of 2.6% from the year-ago period’s reported figure.
Other Trends
Walmart’s early deals for the holiday season are likely to have aided. Retailers unveiled holiday deals earlier this year, with an aim to have a spread out and a safe holiday season shopping experience. In this regard, Walmart hosted its five-day Big Save Event from Oct 11 to Oct 15. The company offered deals on tech gadgets, home and appliance, beauty and fashion, and toys, among others. However, the impact of increased promotions and pricing on margins cannot be ignored. Also, the company has been seeing high costs associated with the pandemic. (Read More: Everything You Should Note Before Walmart's Q3 Earnings)
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Walmart (WMT) to Post Q3 Earnings: Online to Remain a Driver
Walmart Inc.’s (WMT - Free Report) third-quarter fiscal 2021 results, slated to release on Nov 17, are likely to continue reflecting strength in e-commerce sales, especially due to consumers’ increased online shopping amid the pandemic-led social distancing. Notably, Walmart’s e-commerce sales have been surging year over year for a while now.
Walmart has been benefiting from consumers’ increased demand for essential items amid the coronavirus pandemic. Further, increased stay-at-home trends to maintain social distance have led to an accelerated shift to online shopping. Certainly, Walmart’s robust efforts to enhance delivery bode well in this regard. In connection with this, the company’s recently unveiled Walmart+ program (in September) is likely to have yielded results. The program includes unlimited free delivery, Scan & Go options and discount offers.
Additionally, the company has been gaining from its Express Delivery service (introduced in the first quarter of fiscal 2021), through which many items from its stores can be delivered to customers in less than two hours. The service has been expanded to more than 2,800 stores, which are accessible to more than 65% of U.S. households. Apart from this, its Walmart Pickup program enables customers to place orders online and then pick them up from a store for free.
Clearly, Walmart has been pushing all limits to boost its omnichannel operations and step up delivery services to meet customers’ growing needs. We note that these efforts become all the more relevant in the current scenario where social distancing has taken online shopping to a higher level. Even other retailers like Target (TGT - Free Report) and Kroger (KR - Free Report) are gaining from their concerted endeavors to boost delivery services. Apart from strengthening its delivery arm, Walmart has been undertaking other efforts to enhance its e-commerce business for quite some time. The company’s alliances with Shopify and Green Dot and buyouts of ShoeBuy, Moosejaw and Bonobos, among others, underscore its intention to build an impressive digital brand portfolio. Further, the buyout of a major stake in Flipkart has been bolstering its e-commerce sales.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote
Such efforts have been driving Walmart’s e-commerce business and helping it stay firm amid the growing competition from Amazon (AMZN - Free Report) . Notably, Walmart’s U.S. e-commerce sales surged a whopping 97% in the second quarter with strength across all channels. On its last earnings call, management informed that the company’s stores and online merchant teams have been integrated, which is likely to have boosted the performance.
Encouragingly, the Zacks Consensus Estimate for Walmart’s third-quarter revenues is pegged at $132.8 billion, indicating a rise of 3.8% from the figure reported in the year-ago quarter. The consensus mark for earnings has risen by a cent over the past seven days to $1.19 per share. This suggests an increase of 2.6% from the year-ago period’s reported figure.
Other Trends
Walmart’s early deals for the holiday season are likely to have aided. Retailers unveiled holiday deals earlier this year, with an aim to have a spread out and a safe holiday season shopping experience. In this regard, Walmart hosted its five-day Big Save Event from Oct 11 to Oct 15. The company offered deals on tech gadgets, home and appliance, beauty and fashion, and toys, among others. However, the impact of increased promotions and pricing on margins cannot be ignored. Also, the company has been seeing high costs associated with the pandemic. (Read More: Everything You Should Note Before Walmart's Q3 Earnings)
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>