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On Friday, Bernstein reiterated its Outperform rating for Walmart Inc. (NYSE:WMT) shares, maintaining a price target of $108.00. According to InvestingPro data, Walmart has delivered impressive returns, with the stock up over 52% in the past year, though it currently trades at a relatively high P/E ratio of 42.18. The firm’s analysts highlighted Walmart’s strong performance in the first quarter, which surpassed the company’s own forecasts for net sales and adjusted earnings before interest and taxes (EBIT). As a prominent player in the Consumer Staples Distribution & Retail industry with last twelve months revenue of $685.09 billion, Walmart reported a notable 4.0% increase in constant currency net sales growth and a 3.0% rise in adjusted constant currency EBIT growth, compared to its anticipated 3-4% net sales growth and 0.5-2.0% adjusted EBIT growth.
The U.S. comparable sales growth of 4.5% was particularly impressive, exceeding the consensus estimate of 3.9%. Furthermore, Walmart’s adjusted earnings per share (EPS) of $0.61 exceeded expectations by $0.03. Amidst ongoing market challenges, including tariffs, Walmart has confidently reiterated its fiscal year 2026 guidance, which has been set with the assumption that current tariff levels will persist throughout the year.
Analysts at Bernstein expressed confidence in Walmart’s ability to uphold its guidance, viewing it as a positive indicator of the company’s resilience in the face of macroeconomic uncertainties. They believe that Walmart is well-equipped to handle the unpredictable market conditions in the short term. Looking ahead, the analysts also maintain a positive outlook on Walmart’s long-term prospects, suggesting that the company is operating on an improved earnings algorithm that will support its future growth. The company’s strong fundamentals are reflected in its 30-year track record of consecutive dividend increases and overall "GOOD" financial health score from InvestingPro, which offers 12 additional valuable insights about Walmart’s investment potential.
In other recent news, Walmart Inc. reported first-quarter earnings per share (EPS) of 61 cents, surpassing the average analyst expectation of 58 cents. This performance was driven by a 4.5% increase in U.S. comparable sales, which exceeded the forecasted 3.9%, alongside a 1.6% rise in customer traffic and a 2.8% growth in average ticket size. Analysts from firms such as TD Cowen, RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, and Goldman Sachs have maintained positive ratings on Walmart, reflecting their confidence in the company’s strategic positioning and growth prospects. Notably, RBC Capital Markets adjusted its second-quarter net sales growth estimate slightly downward but raised its EPS estimate for the same period. BMO Capital Markets emphasized Walmart’s achievement of ecommerce profitability for the first time, while KeyBanc Capital Markets noted the company’s ability to perform well amidst economic challenges. Goldman Sachs highlighted Walmart’s strategies to mitigate the impact of a challenging economic landscape, including improved inventory management. These developments underscore Walmart’s ability to navigate the complexities of the retail environment, maintaining its full-year guidance despite potential volatility from tariffs.
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