Walmart is set to announce its earnings for the fiscal first quarter on May 15, 2025, with analysts forecasting earnings of 58 cents per share on revenues of $164.47 billion. This marks an expected decline of 8% in earnings compared to the previous year, despite a slight revenue growth of 2%. Last year’s figures were reported at 63 cents per share and $161.51 billion in revenue.
The company has been grappling with persistent tariffs and economic volatility, which have been squeezing profit margins and complicating forecasts of future profitability. Walmart’s management has acknowledged that rising costs are impacting the company’s bottom line, informed by broader inflationary trends affecting consumer spending. However, the retailer remains strong financially, boasting a market capitalization of $774 billion, with $681 billion in revenue and $16 billion in net income over the last year.
Historically, WMT stock has shown an inclination to increase following earnings announcements, with a 50% rate of positive returns and a median rise of 3.6% on the day after the announcement. Looking more closely, the success rate of positive one-day returns climbs to 67% when evaluating more recent three-year data. For traders, understanding past performance can inform strategies, especially when considering the correlation of returns over different time frames.
Peers’ earnings reports might influence Walmart’s stock reaction as well. Historical comparisons of earnings performance show the relevance of tracking peer influences, providing a broader context for stock movements.
These consistent patterns suggest that investors could approach Walmart with cautious optimism as they prepare for its earnings announcement, showing how the company may navigate prevailing economic challenges. Ultimately, Walmart’s ongoing resilience and strategic positioning indicate potential for a positive stock response in the market.