Walmart Inc. Just Recorded A 5.6% EPS Beat: Here's What Analysts Are Forecasting Next

Last week saw the newest yearly earnings release from Walmart Inc. (NYSE:WMT), an important milestone in the company's journey to build a stronger business. Walmart reported US$648b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.91 beat expectations, being 5.6% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Walmart

Taking into account the latest results, the most recent consensus for Walmart from 31 analysts is for revenues of US$670.0b in 2025. If met, it would imply a reasonable 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 21% to US$2.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$668.9b and earnings per share (EPS) of US$2.34 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$65.35, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Walmart at US$76.00 per share, while the most bearish prices it at US$50.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Walmart's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 4.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Walmart.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Walmart's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$65.35, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Walmart going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Walmart that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.