Walmart's Q2 Earnings Expected to Beat Estimates

Wall Street expects Walmart to report a year-over-year increase in earnings on higher revenues when it releases its Q1 2025 earnings on August 21. Analysts predict earnings of $0.72 per share, up 7.5% YoY, and revenues of $175.51 billion, up 3.7% YoY. The consensus EPS estimate has remained unchanged over the last 30 days, and the company's earnings surprise prediction model suggests a positive surprise is possible.

Wall Street anticipates Walmart (WMT) to report a year-over-year increase in earnings on higher revenues when it releases its Q1 2025 earnings on August 21. Analysts predict earnings of $0.72 per share, representing a 7.5% year-over-year (YoY) increase, with revenues expected to reach $175.51 billion, a 3.7% YoY increase [1].

The consensus earnings per share (EPS) estimate has remained unchanged over the last 30 days, indicating analysts' collective reassessment of their initial estimates. However, the company's earnings surprise prediction model, known as the Zacks Earnings ESP (Expected Surprise Prediction), suggests a positive surprise is possible. The Most Accurate Estimate, which is a more recent version of the Zacks Consensus EPS estimate, is higher than the consensus estimate, resulting in an Earnings ESP of +4.95% [1].

This positive Earnings ESP, combined with Walmart's Zacks Rank #2 (Buy), indicates a high likelihood of the company beating the consensus EPS estimate. Historically, Walmart has beaten consensus EPS estimates four times over the last four quarters, suggesting a consistent track record of outperforming expectations [1].

While an earnings beat or miss may not be the sole determinant of a stock's price movement, betting on companies expected to beat earnings expectations does increase the odds of success. Investors should consider other factors, such as management's discussion of business conditions during the earnings call, to gauge the sustainability of any immediate price changes and future earnings expectations [1].

For investors looking to stay informed about upcoming earnings announcements, the Zacks Earnings Calendar is a valuable resource. Walmart's earnings report is expected to provide insights into the company's performance and potential future growth prospects.

References:
[1] https://finance.yahoo.com/news/walmart-wmt-reports-next-week-140002247.html