Retailer Walmart Inc (NYSE:WMT) could show market gains in both physical retail and its ecommerce business when the company reports second-quarter financial results Thursday after market close.
Earnings Estimates: Analysts expect Walmart to report second-quarter revenue of $176.16 billion, up from $169.34 in last year's second quarter, according to data from Benzinga Pro.
The company missed analyst estimates for revenue in the first quarter, but have beaten estimates in nine of the last 10 quarters.
Analysts expect Walmart to report second-quarter earnings per share of 74 cents, up from 67 cents per share in last year's second quarter.
The company has beaten analyst estimates for earnings per share in six straight quarters and in nine of the last 10 quarters. The lone non-beat quarter saw the company's earnings per share match estimates.
Guidance from the company calls for second-quarter revenue in the range of $173.67 billion to $175.35 billion.
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Key Items to Watch: Walmart's earnings report comes a day after rival retailer Target Corporation (NYSE:TGT) reported quarterly results. Target beat analyst estimates for both earnings per share and revenue, but shares fell on guidance and overall concerns.
Target saw gross margin rates decline and comparable store sales down year-over-year. Operating income and EBITDA also declined in the quarter on a year-over-year basis.
The company reiterated its full-year guidance, acknowledging that tariffs are causing short-term pressure.
Walmart's earnings report could show market share taken from Target if the company shows stronger same-store sales growth and growth in digital sales.
Walmart's global ecommerce sales were up 22% year-over-year in the first quarter, with the company also seeing comparable sales up 4.5% for Walmart U.S. excluding fuel.
Walmart has also acknowledged pressure from tariffs, but its results may show better control or lower impact from the rising costs.
Data from Placer.ai shows that Walmart experienced a 1.0% visit growth in the second calendar quarter, compared to a 2.5% decline in the first calendar quarter.
Walmart saw visits decline by more than 4% year-over-year in both February and March, with growth of 4.3% in March, growth of 0.7% in May and declines of 1.6% in both June and July. The stronger results in recent months come as the retailer pushes for digital sales growth. Walmart's fiscal second quarter includes results from May, June and July.
The results for visits data could suggest that Walmart is growing digital sales without hurting its physical store sales too much.
While Walmart may be taking market share from Target, the rising competition from Amazon.com Inc (NASDAQ:AMZN) could be a cause for concern. Amazon is expanding its same-day delivery for Amazon Fresh and Whole Foods. Walmart could be asked questions about the growing competition from Amazon during the earnings call.
Some analysts have been raising their price targets on Walmart stock ahead of the earnings report.
Price Action: Walmart stock is down 0.9% to $102.22 on Wednesday versus a 52-week trading range of $74.59 to $105.30. Walmart stock is up 13.7% year-to-date in 2025.
Target stock is down 8% on Wednesday after the earnings report. Target stock is down 29.3% year-to-date in 2025.
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