Walmart Inc. WMT is set to release fourth-quarter fiscal 2025 earnings on Feb. 20, wherein it is likely to witness top and bottom-line growth. The omnichannel retailer has been benefiting from the strength of its in-store and digital business, reflecting its adept navigation of the evolving retail landscape.

The Zacks Consensus Estimate for revenues is pegged at $179.18 billion, indicating a 3.3% rise from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 64 cents per share, which suggests a 6.7% jump from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of 9.3%, on average.

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WMT: Key Factors to Watch

Walmart has been benefiting from its omnichannel strategy, which seamlessly integrates online and in-store shopping. Features like curbside pickup, expanded delivery services and Sam’s Club’s “Just Go” checkout highlight its focus on convenience, helping attract a broad customer base.

Walmart’s e-commerce operations remain a significant growth driver, with global online sales climbing 27% in the third quarter of fiscal 2025, fueled by expanded pickup and delivery options, a thriving marketplace and advanced supply-chain automation. These technological advancements have bolstered the company’s digital capabilities, strengthening its foothold in the competitive online retail space.

Apart from this, Walmart is diversifying its revenue streams through high-margin businesses, including advertising, membership programs and marketplace services. Internationally, the company’s operations in key regions such as Mexico (Walmex), India (Flipkart and PhonePe) and China have been fueling growth. These upsides are likely to have driven results in the quarter under review.

Obstacles Expected in WMT’s Q4 Release

However, Walmart is experiencing margin pressures from shifts in product mix, particularly due to the growth of GLP-1 drug sales in its health and wellness category. 

Further, Walmart’s fourth-quarter projections signal a deceleration in growth compared to the third quarter. The implied constant-currency (cc) sales growth of 3%-4% and operating income growth of 5%-7.5% are softer than the third-quarter results, wherein revenues and consolidated operating income grew a respective 6.2% and 9.8% at cc. This conservative outlook, compounded by anticipated headwinds from the earlier timing of the Big Billion Days event, is a concern for fourth-quarter results.

Earnings Whispers for WMT Stock

Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. 

Walmart carries a Zacks Rank #2 and has an Earnings ESP of +2.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Costco Wholesale COST currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.

Urban Outfitters URBN currently has an Earnings ESP of +8.58% and a Zacks Rank of 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.63 billion, which indicates growth of 9.4% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Urban Outfitters’ fourth-quarter fiscal 2025 EPS is pegged at 89 cents, which implies an almost 29% increase year over year. URBN has a trailing four-quarter earnings surprise of 22.8%, on average. 

Sprouts Farmers Market SFM currently has an Earnings ESP of +9.58% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Sprouts Farmers’ quarterly revenues is pegged at $1.95 billion, which suggests an increase of 14.8% from the prior-year quarter.

The Zacks Consensus Estimate for Sprouts Farmers’ quarterly earnings per share is pegged at 72 cents, indicating 47% growth from the year-ago period. SFM has a trailing four-quarter earnings surprise of 15.3%, on average.

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Walmart Inc. (WMT) : Free Stock Analysis Report

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