Walmart, America’s largest retailer, is set to release its second-quarter earnings report on Thursday, providing valuable insights into the state of the consumer and the economy. As consumers face ongoing challenges such as higher gas prices, a sluggish job market, and rising costs for groceries, analysts are expecting Walmart’s same-store sales to receive a boost as shoppers seek value and stock up on back-to-school essentials. However, it’s not just the retail business that’s garnering attention. Walmart’s side hustles in the advertising and health and wellness sectors are also expected to contribute to its bottom line. With its media business, Walmart Connect, and its rapidly expanding health and wellness initiatives, Walmart is tapping into lucrative opportunities that could solidify its position as a top advertiser and make healthcare more accessible for consumers.
Walmart Connect, the company’s media business, has been growing rapidly and aims to become one of the top 10 advertisers in the US. With partners like NBCUniversal, Roku, TikTok, and TalkShopLive, Walmart Connect leverages consumer behaviors to refine ad targets and boost e-commerce sales. Additionally, Walmart’s health and wellness business, which includes Walmart Health and virtual health offerings, is set to expand further with more than 75 locations planned by the end of 2024. The recent end of a partnership with National Vision has amplified Walmart’s healthcare expansion, and the company has also raised wages for opticians and pharmacists, signaling its commitment to being an employer of choice in these fields.
Wall Street analysts have high expectations for Walmart’s earnings, with projected net sales of $159.7 billion and strong growth across key metrics such as same-store sales, e-commerce, and gross margin. The company’s ability to navigate the current macroeconomic challenges and maintain its price leadership and convenience will be closely watched by investors. Furthermore, Walmart recently announced executive changes, including a new role for the CEO of Sam’s Club and promotions within the Walmart US leadership team.
As Walmart prepares to unveil its earnings report, industry experts have shared their insights. Robert Drbul from Guggenheim believes that Walmart’s price and value proposition, combined with increased convenience and assortment, position the company well in an uncertain macro environment. Edward Yruma from Piper Sandler expects Walmart’s rollbacks and focus on general merchandise to drive continued earnings strength, while Greg Melich from Evercore ISI believes that a strong earnings report could propel the stock to new heights.
Overall, Walmart’s earnings report will provide valuable insights into
Walmart is set to release its second-quarter earnings report on Thursday, and analysts are expecting strong results from the retail giant. Despite ongoing economic challenges such as higher gas prices and a slowdown in the job market, Walmart’s value proposition and wide product range are expected to attract consumers looking to stock up on back-to-school supplies and other essentials.
While the focus will primarily be on Walmart’s retail business, the company’s side hustles in its ad business and health and wellness business are also expected to contribute to its bottom line. Walmart Connect, the company’s media business, is experiencing rapid growth and aims to become one of the top 10 advertisers in the US. With partnerships with companies like NBCUniversal, Roku, TikTok, and TalkShopLive, Walmart Connect is capitalizing on the resurgence of the ad market.
Walmart’s health and wellness business has also been expanding. The company plans to double its health center footprint by the end of 2024 and has recently acquired telehealth provider MeMD. Additionally, Walmart has raised wages for more than 7,000 opticians and pharmacists, signaling its commitment to being an employer of choice in these fields.
Analysts have high expectations for Walmart’s earnings, with estimated net sales of $159.7 billion and adjusted diluted EPS of $1.70. They also anticipate strong growth in same-store sales for both Walmart and Sam’s Club. Walmart’s stock remained steady ahead of the earnings report.
In other news, Walmart announced executive changes within its organization. Sam’s Club CEO and president Kathryn McLay will be transitioning to a new role as head of the international division, while Chris Nicholas and Kieran Shanahan will be taking on new leadership positions within Sam’s Club and Walmart US, respectively.
Overall, Walmart’s ability to attract value-conscious consumers and its expansion into new businesses like advertising and healthcare are expected to contribute to its strong performance in the second quarter.
