Walmart (WMT) is a stock worth considering for investors seeking companies with a proven track record of exceeding earnings estimates. This retail giant, operating in the Zacks Retail – Supermarkets industry, has shown a consistent pattern of beating expectations, particularly in the last two quarters.
The average earnings surprise for the past two quarters was a significant 12.24%. In the most recent quarter, Walmart defied expectations, reporting earnings of $0.60 per share, surpassing the anticipated $0.52 per share by a substantial 15.38%. Similarly, in the previous quarter, the company delivered $0.60 per share, outperforming the consensus estimate of $0.55 per share, resulting in a 9.09% surprise.
Currently, Walmart boasts an Earnings ESP of +1.06%. This positive Earnings ESP suggests that analysts have recently become more optimistic about the company’s earnings potential. Combined with its Zacks Rank #2 (Buy), this positive indicator suggests that another earnings beat is likely in the near future.
Walmart’s next earnings report is scheduled for release on August 15, 2024. It’s important to remember that while a negative Earnings ESP can reduce its predictive power, it does not guarantee an earnings miss. Many companies outperform the consensus EPS estimate, and share prices can fluctuate even if they miss expectations.
The company’s strong performance, coupled with its positive outlook, makes Walmart an attractive investment opportunity for investors seeking stocks with a history of exceeding expectations.
