What to Expect From Walmart’s Upcoming Q4 Earnings?

RBC Capital analysts shared their views on Walmart Inc. (NYSE:WMT) ahead of the company’s upcoming Q4 earnings announcement, scheduled on Feb 21 before the market opens.

The analysts expect Q4 U.S. comp growth of 3.5% (vs. Street’s 4.0%) and EPS of $1.49 (in line with expectations). The analysts expect a relatively in-line 2024 guide. The company's long-term algorithm calls for 4% top-line growth and modest operating leverage. The analysts don't expect the 2024 guide will stray too far from this. More specifically, they think it's reasonable to expect 3% Walmart U.S. comp growth (vs. Street’s 3.0% estimate) and EPS growth in mid-single to high-single-digits (vs. Street’s 8% estimate).

The analysts raised their 2024/2025 EPS estimates to $6.48/$7.45 ($6.47/$7.42 prior) mainly driven by a slightly more favorable FX outlook and updated fuel contribution estimates.