Walmart will report earnings before the bell. Here’s what to expect
Walmart will report its second-quarter earnings before the bell on Tuesday, as retailers cope with an uncertain economic backdrop and consumers who feel pinched by inflation.
Here’s what analysts expect the company to report for the quarter, according to Refinitiv consensus estimates:
- Earnings per share: $1.62 expected
- Revenue: $150.81 billion expected
Walmart’s profits are under pressure as its shoppers buy fewer high-margin items, such as apparel and electronics. Last month, the discounter cut its quarterly and full-year profit outlook, saying its shoppers have fewer dollars to spend on discretionary merchandise as they are forced to spend more on necessities like food and fuel.
On the other hand, Walmart said it is gaining market share in its grocery business as more shoppers become budget conscious and turn to its stores and website for low-priced food and essentials. It raised expectations for same-store sales because of gains in grocery. Groceries are less profitable than merchandise like apparel.
The retailer has looked to newer revenue streams to drive growth, too. Walmart on Monday announced that it struck a deal with Paramount Global to offer its Paramount+ streaming service for free to customers who are part of its Walmart’s membership program. Walmart+ costs $98 per year, or $12.95 per month, and includes other perks, such as free shipping of online purchases and fuel discounts.
As of Monday’s close, Walmart shares are down about 8% so far this year. Shares closed on Monday at $132.60, bringing the company’s market value to $363.48 billion.
This story is developing. Please check back for updates.
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