Walmart (NYSE:WMT) stock has been a standout in 2024, surging over 60% year-to-date. This remarkable performance reflects Walmart’s ability to navigate challenging economic conditions while maintaining robust financial growth. With Q3 fiscal 2025 results set to be released on Tuesday, Nov. 19, investors are closely watching for signals about Walmart stock’s future trajectory.
What to Expect From Walmart’s Q3 Earnings
Projected Growth Figures
Walmart anticipates Q3 sales growth between 3.25% and 4.25%, with operating income expected to rise by 3% to 4.5%. The retailer’s earnings per share (EPS) are forecasted to range between $0.51 and $0.52, but analysts are slightly more optimistic with an average EPS estimate of $0.53, reflecting a 4% year-over-year increase.
While these numbers highlight steady progress, Walmart has allocated a significant portion of expenses for Q3 and Q4, which could moderate its earnings growth.
Catalysts Driving Walmart Stock Performance
Expanding Market Share
Walmart’s low-price strategy continues to attract consumers, helping the retailer gain market share both domestically and internationally. U.S. sales at Walmart and Sam’s Club have seen steady growth, with increased transaction counts and unit volumes.
Additionally, private-label products such as Bettergoods and Member’s Mark are driving significant sales growth. Walmart’s fashion line, No Boundaries, has also been well-received, enhancing its appeal across diverse customer segments.
Digital Transformation and E-Commerce Growth
U.S. E-Commerce Success
Walmart’s e-commerce sales rose 20% across segments and 22% in the U.S. during Q2, driven by growing demand for delivery and pickup services. Improved speed and accuracy have bolstered customer satisfaction, while active e-commerce customers increased by 20%.
International Gains
Globally, Walmart’s digital initiatives are paying off. In China, the number of orders fulfilled within an hour increased by 28%, and Flipkart’s grocery sales in India grew over 50%. Walmart+ membership growth is also contributing significantly, with income from memberships growing at double-digit rates.
Advertising and Marketplace Expansion
Walmart’s marketplace business remains a key driver of growth, with U.S. marketplace sales rising 32% in Q2. Categories such as fashion, toys, and home goods have seen notable gains. Internationally, Walmart has expanded marketplace offerings in Mexico and launched cross-border trade in Chile.
Advertising revenue is also surging. Walmart Connect’s U.S. advertising sales grew by 30%, while global advertising sales increased 26%. The seamless integration of advertising into Walmart’s marketplace platform has been a significant factor, with sales from marketplace sellers up nearly 50%.
Investments in Supply Chain and Technology
To sustain long-term growth, Walmart is making substantial investments in its supply chain and technology. Over 45% of Walmart’s e-commerce fulfillment center volume is now automated, significantly improving efficiency.
Walmart’s focus on artificial intelligence (AI) and automation is enhancing customer experiences, streamlining operations, and boosting profitability. These initiatives underscore Walmart’s commitment to maintaining its competitive edge in a rapidly evolving retail landscape.
Wall Street’s Outlook on Walmart Stock Performance
Wall Street remains optimistic about Walmart stock performance ahead of its Q3 results. Analysts maintain a “Strong Buy” consensus rating, citing the retailer’s robust market share growth, innovative product offerings, and digital transformation.
Despite planned expense increases in Q3, Walmart’s long-term outlook remains strong. The company’s focus on e-commerce, private-label products, and supply chain advancements positions it well for sustained growth.
Conclusion: Walmart Stock Remains a Strong Performer
Walmart’s strong 2024 performance, driven by solid sales growth and operational excellence, has solidified its position as a market leader. While short-term challenges may impact Q3 results, the company’s strategic initiatives in e-commerce, advertising, and technology investment provide a clear path for continued success.
Investors and analysts alike are watching closely as Walmart (NYSE:WMT) prepares to release its Q3 earnings, which could further cement its reputation as a retail powerhouse.
Featured Image: Freepik
