Walmart Stock In Focus Ahead of Q3 Earnings: Retail Sentiment Strong

Walmart stock ($WMT) was down slightly (-0.20%) in Monday trading ahead of the retail giant's third-quarter earnings, with retail sentiment inching up. Walmart’s results are being closely watched for insights into the impact of rising consumer prices on overall consumer sentiment as shoppers – from all income levels – look for bargain purchases. Overall, October U.S. retail sales rose slightly more than expected, official data released on Friday showed. Wall street analysts expect the retailer to post $0.53 in earnings per share (EPS) on revenues of $167.69 billion, according to Stocktwits data. Last quarter, Walmart had forecast Q3 adjusted earnings per share of $0.51-$0.52 while also raising its adjusted EPS view for fiscal 2025 to $2.35-$2.43 from $2.23-$2.37 and its revenue view to +3.75%-4.75% from +3%-4%, The Fly reported. Retail Sentiment on the stock improved to ‘bullish’ (74/100) from ‘neutral’ (51/100) a day ago. Message volumes rose to ‘extremely high’ (85/100) levels from ‘normal’ (47/100). WMT sentiment meter and message volumes on Nov 18 as of 3:50 pm ET| Source: Stocktwits Walmart stock is already positioned to see its “best year in two decades,” thanks to an edge over its rivals facing weak demand from budget-conscious consumers faced with macro uncertainty, Reuters reported, noting the stock gained about 60% so far this year, outstripping gains of about 13% in the S&P 500 Consumer Staples sector. “Walmart has found a sweet spot where they’re satisfying higher-income households looking to save on groceries, while also appealing to lower-income consumers seeking the best value possible,” Greg Zakowicz, senior e-commerce expert at software company Omnisend told Quartz. According to Reuters, Walmart has also focused on high-margin revenue streams such as its marketplace and retail media units. Morgan Stanley analysts expect a "modest upside" for Q3 results and Q4 implied guidance on higher operating leverage. Stocktwits users were mostly upbeat on the stock with one user expecting a rally.