Will the company raise its guidance for the rest of fiscal 2020?
Walmart is the world’s largest retailer, and analysts always want to see what the company is doing next. Walmart reported positive growth over the last few years and its shares are up nearly 15% year to date.
And this Thursday, Walmart is set to release its fiscal second-quarter earnings report. The Zacks consensus estimate has Walmart bringing in more than $130 billion in revenue and earnings of $1.21 per share.
However, Forbes reported that the “whisper number” is $1.25 per share. The whisper number is Wall Street’s unofficial earnings guidance.
Walmart’s Upcoming Q2 Earnings Report
An earnings report is always less about the numbers themselves and how investors feel about those numbers. Investors want to know if the company is improving its online strategy and successfully holding off competitors like Amazon.
And Walmart has several headwinds that could derail its progress. Here are three things investors will be looking for in Walmart’s latest earnings report.
Is the Company Improving Its Omnichannel Presence?
Most of Walmart’s growth is due to the company’s efforts to improve its omnichannel presence. The company remodeled many of its stores, improved its pricing strategy, and boosted its e-commerce business. Investors will want to see if this is reflected in the company’s earnings report.
Is Walmart’s Grocery Business Continuing to Expand?
One of the company’s biggest selling points is its grocery business. The company partnered with Uber and Lyft to improve its grocery delivery process. And the company acquired the logistics startup Parcel.
Walmart previously stated that it plans to have 3,100 grocery pickup sites and 1,600 delivery locations by the end of fiscal 2020. So investors will be watching for an update on this metric.
Is the Company’s International Growth Improving?
Walmart continues to experience strong domestic growth, but it’s struggled with international growth. For the past few quarters, the company’s international growth has remained relatively flat.
This is mostly due to weak growth in the U.K. and China. And the threat of additional tariffs on Chinese imports doesn’t help matters. Investors will be looking for signs that this metric is improving as it may affect the company’s 2020 guidance.
Summary
Investors are watching the company’s future outlook and predicted sales growth both in the U.S. and internationally. If Walmart can stabilize its international business and continue to strengthen its online channels, it’s possible the company could raise its full-year guidance on Thursday.
