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Investing.com - Goldman Sachs has maintained its Buy rating and $101.00 price target on Walmart (NYSE:WMT) following the retailer’s second-quarter fiscal 2025 earnings report. The retail giant, currently valued at over $816 billion, is trading near its 52-week high of $105.30.
Walmart reported adjusted earnings per share of $0.68 for the quarter, falling short of both Goldman Sachs’ estimate of $0.70 and the consensus forecast of $0.74, according to analyst Kate McShane. According to InvestingPro, Walmart maintains a GOOD financial health score, though it’s currently trading at a relatively high P/E ratio of 43.76.
Despite the earnings miss, Walmart US same-store sales increased 4.6%, outperforming consensus expectations of 3.8%, driven by traffic growth of 1.5% and a 3.1% increase in average ticket size.
By category, grocery sales rose by mid-single digits with broad-based strength and market share gains alongside inflation of approximately 150 basis points, while health and wellness grew by mid-teens due to higher prescription counts and strong optical and over-the-counter sales.
E-commerce continued to show strong momentum with global net sales up 25% and Walmart US e-commerce sales increasing 26%, accelerating from 22% and 21% growth respectively in the first quarter, while advertising revenue grew 46% including VIZIO or 31% excluding VIZIO.
In other recent news, Walmart reported its second-quarter earnings, revealing adjusted earnings per share of $0.68, slightly below the anticipated $0.73. Excluding a general liability reserve charge, earnings ranged between $0.72 and $0.73. Despite the earnings miss, Walmart’s revenue exceeded market forecasts, reaching $177.4 billion. Morgan Stanley (NYSE:MS), Evercore ISI, DA Davidson, Truist Securities, and BMO Capital have all reiterated their positive ratings on Walmart stock, with price targets ranging from $110 to $117. Morgan Stanley maintained an Overweight rating, highlighting strong revenue growth despite profitability concerns. Evercore ISI and BMO Capital both reiterated an Outperform rating, noting that the earnings miss included higher liability claims not adjusted for in the results. DA Davidson and Truist Securities both maintained a Buy rating, emphasizing Walmart’s strong sales performance across various segments. Notably, U.S. comparable sales increased by 4.6%, while Sam’s Club and international operations also showed robust growth.
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