People walk near the entrance of a Walmart store in Miami, Florida, on May 14, 2024.
Joe Rydell | Getty Images
Walmart It will report earnings on Thursday, as investors look to the nation's largest retailer to gauge the health of American consumers and the strength of the industry.
Here's what Wall Street expects for the discount, based on a survey of analysts conducted by LSEG:
Earnings per share: 52 cents, adjusted expected revenue: $159.50 billion
As the nation's largest retailer and private employer, Walmart is often viewed as a leader in the American economy. However, it has generally performed better during inflation than other retailers because it sells staple goods such as groceries and has a value-oriented reputation.
However, the discounter felt bloated as its customers threw fewer items into shopping carts and showed a reluctance to purchase more expensive items such as televisions or computers.
This week brought promising news for Walmart and other retailers. Inflation fell in April, according to Labor Department data released Wednesday. The consumer price index rose by 3.4% year-on-year. The closely watched figure tracks the cost of goods and services at the cash register.
Walmart expects sales to grow in the quarter and the full year. The company said in February that it expects consolidated net sales to rise 4% to 5% in the fiscal first quarter. It also expected adjusted earnings per share to range from $1.48 to $1.56 on a pre-stock split basis. The company split its stock three-for-one in February.
Walmart has cut spending in some areas and invested heavily in others. Earlier this week, the company said it would lay off and relocate hundreds of company employees, including moving many to its headquarters in Bentonville, Arkansas. The move came on the heels of another cost-cutting measure: the closing of Walmart Health Clinics, a network of doctors and dentists' offices that opened next to its stores.
On the other hand, the big retailer has poured money into other efforts. In its pursuit of advertising dollars, Walmart announced in February that it would acquire smart TV maker Vizio in a deal worth $2.3 billion. It also modernizes and upgrades more than 1,400 stores across the country. It recently launched a new grocery brand with items and flavors aimed at younger, more affluent shoppers.
Walmart shares closed Wednesday at $59.83, bringing the company's market share to $482.22 billion. The company's stock is up about 14% so far this year, outpacing the S&P 500's gain of about 11% over the same period.
