Walmart expected to post quarterly and full-year income, revenue gains
by February 17, 2025 4:03 pm 1,285 views
Walmart will report fourth-quarter and fiscal 2025 year-end results on Thursday (Feb. 20), and analysts who cover the retail giant expect quarterly earnings per share of 65 cents, up 8.3% from a year ago. Revenue is forecast at $179.25 billion, which would be up 3.4%.
The U.S. segment sales are forecast at $122.46 billion, up 4.1% year over year, while membership and other sales are pegged at $1.59 billion, up 7.9% from the prior-year quarter. Walmart’s international segment is expected to post revenue of $32.44 billion, up fractionally.
Walmart, which typically offers conservative guidance, seldom underperforms the Wall Street consensus. Walmart CEO Doug McMillon has said the retailer is set to grow net income ahead of revenue thanks in part to higher-profit ancillary segments like advertising, marketplace and fulfillment services.
The benchmark metric of U.S. same-store sales is expected to rise 4% excluding fuel, which would be unchanged. Sam’s Club comp sales are estimated at 4.5%, excluding fuel, up from 3.1% a year ago.
The National Retail Federation (NRF) reported that holiday sales grew 4% during November and December which correlates to two-thirds of Walmart’s fourth quarter. January sales were up 5.44%, and up 5.72% excluding restaurants, autos and fuel, according to the trade group.
Analysts expect Walmart will be one of the winners from the holiday season in part because of strong online sales, health and beauty sales, home and fashion sales, and robust food sales.
D.A. Davidson predicts Walmart will earn 64 cents per share for the quarter with fiscal-year earnings of $2.48.The brokerage house is bullish on the stock noting the company is positioned better than some of its competitors to navigate the proposed tariffs.
Simeon Gutman, an analyst with Morgan Stanley, recently reported private brand sales grew by $9 billion last year. He said premium private brands at Walmart and Target continue to drive sales for the category. Numerator also reports five of Walmart’s private brands have household penetrations levels above 65%. Morgan Stanley expects quarterly earnings of 66 cents per share, slightly ahead of consensus.
UBS equity analyst Michael Lassiter said 20% of all U.S. retail grocery sales go through Walmart. He praised Walmart’s core business of selling a wide array of goods at value, and said the company’s efforts to diversify the revenue stream with its ancillary business segments also give it the ability to keep prices low while investing in customer service improvements.
Walmart’s stock price has increased in value by more than 85% over the past year prompting J.P. Morgan to recently raise its annual target price to $112 with an overweight “buy” rating ahead of the earnings report.
Telsey Advisory Group also raised its price target on Feb. 12 to $115 reiterating its “buy” rating. CEO Dana Telsey said Walmart is winning at every turn with its stores, online, in media spend and in other areas where the retailer continues to gain share. With tariffs on the horizon, Telsey said Walmart is better positioned than the dollar stores and Target.
Shares of Walmart (NYSE: WMT) closed Friday (Feb. 14) at $104.04, down $1.01. Financial markets were closed Monday in observance of President’s Day. Over the past 52 weeks, shares have traded between $57.60 and $105.30.