Could Walmart Stock Rise on Its Fiscal 3Q18 Results?
What to expect from fiscal 3Q17
Walmart (WMT) is expected to announce its fiscal 3Q181 results on November 16, 2017. Analysts expect the company to mark YoY (year-over-year) improvement in its top line. However, its bottom-line results are expected to remain muted.
Walmart has reported healthy performance during the first half of the current fiscal year, thanks to the strong sales in its Digital segment and improving trends in the US (SPY) segment.
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The company’s continued investment in price, multichannel offerings, improved merchandising, and ease of shopping through numerous digital initiatives are driving Walmart’s top-line growth. However, increased competition and low pricing have dented the company’s margins and its bottom line.
Walmart stock is surging
Walmart stock gained about 30.6% on a YTD (year-to-date) basis on November 8, 2017. Improved sales and profitability in fiscal 1H18 and upbeat guidance are driving Walmart stock higher.
The company expects its top-line and bottom-line results to increase in the coming quarters, driven by higher sales across all formats. The company plans to repurchase $20.0 billion in stock in the next several years.
On a YTD basis, the S&P 500 (SPX-INDEX) has risen 15.9%. Rivals Costco (COST) and Target (TGT) still lag Walmart in terms of stock price gains. Costco stock has risen 9.9%, while Target stock has fallen 19.2% on a YTD basis.
- fiscal 3Q18 ended October 31, 2017 ↩