When Walmart (NYSE:WMT) reports first-quarter fiscal 2024 earnings on May 18, it is expected to show top-and-bottom-line growth. The Consensus Estimate for revenues is $148,944 million, implying a nearly 5% rise over the prior-year quarter’s reported amount.

In the last 30 days, the Consensus Estimate for the bottom line has climbed by a penny to $1.31 per share. Earnings are expected to increase by 0.8% over the previous quarter.

Walmart has an average trailing four-quarter profit surprise of 6.5%. In the most recent quarter, the grocery giant posted a 12.5% profits surprise.

Key Factors to Watch

Walmart has benefited from its strong comp sales performance, which is fueled by its ongoing growth efforts and stellar e-commerce performance. Walmart has made various efforts to improve its goods assortments. In addition, the corporation has prioritized store refurbishment in an effort to modernize them with new in-store and digital advancements.

The company’s omnichannel penetration is growing. As of the end of fiscal 2023, its global e-commerce sales accounted for more than 13% of total revenues. Walmart has undertaken a number of e-commerce activities, including acquisitions, collaborations, and enhanced delivery and payment methods. Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace, and Walmart Fulfillment Services are examples of how the corporation is innovating in the supply chain, boosting capacity, and establishing businesses.

Walmart has taken significant steps to strengthen its delivery arm, as evidenced by its partnership with Salesforce, the expansion of its InHome delivery service, investment in DroneUp, a pilot with HomeValet, the launch of the Walmart+ membership program, the introduction of Express Delivery, and drone delivery pilots with Flytrex and Zipline, among other initiatives. Furthermore, the company’s store and curbside pickup options make it easier for customers. Walmart U.S. had 4,600 pickup locations and over 3,900 same-day delivery stores as of the fourth quarter of fiscal 2023.

These gains are expected to have boosted revenue in the current quarter. Walmart anticipates consolidated net sales growth of 4.5-5% at constant currency in the first quarter.

However, Walmart is experiencing cost inflation and expects it to continue. Walmart anticipates that product mix-related pressure would endure in fiscal 2024.

Management provided a cautious outlook for fiscal 2024 on its fourth-quarter fiscal 2023 earnings call, citing the continuance of higher prices and the possibility of additional macroeconomic headwinds. The adjusted earnings per share (EPS) for the first quarter of fiscal 2024 are expected to be in the $1.25-$1.30 range, including a three-cent LIFO effect. In the prior-year period, adjusted EPS was $1.30.

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