Reports FY Q1 2023 results on Tuesday, May 17, before the open
Revenue expectation: $138.83 billion
EPS expectation: $1.47
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Investors have several reasons to feel optimistic about Walmart’s (NYSE:) latest quarterly earnings, scheduled to be released tomorrow.
The mega retailer is on track to post a of positive traffic at its stores as the company successfully handles cost pressures and lingering supply-chain disruptions. WMT closed at $148.05 on Friday.
Sales this year will climb about 4%, the Bentonville, Arkansas-based retailer said in February, adding that operating income would grow faster than revenue.
This strong outlook comes in an environment when retailers are navigating multiple challenges posed by global supply-chain disruptions, a labor squeeze, and rising fuel costs—all of which are contributing to the fastest jump in consumer prices in four decades.
These pressures, however, provide Walmart a competitive edge to attract more cost-conscious customers. According to chief executive Doug McMillon, Walmart is in a strong position to win over more consumers, helped by its omnichannel focus which is pushing digital penetration to record levels. He told Bloomberg in an interview that fighting inflation is in the company’s DNA.
If all goes as anticipated, Walmart should post its 26th successive quarter of positive traffic at its US stores when it reports its fiscal 2023 first-quarter earnings.
The company is also on the right track to counter online retailers like Amazon.com (NASDAQ:), by successfully executing its own e-commerce strategy.
Online sales, which are becoming a more significant contributor to reported same-store sales growth, have expanded 87% during the past two years.
