Walmart Earnings Preview: Inventory Issues Are Being Corrected, Which Is A Plus


  • The inventory-to-sales ratio is coming back in line with historical measures however it’s not entirely there yet;
  • Sam’s Club has turned around as Sam’s has posted comp growth of over 10% for the last 11 quarters;
  • WMT is an inflation beneficiary as “average ticket” has averaged 9.9% since January ’20 or past 12 quarters, but it also crimps margins from a supplier perspective;
  • The stock is fairly valued according to Morningstar but internal inventory improvements could help drive the stock higher;

Walmart Eliminating Hundreds Of Corporate Roles In Restructuring Effort

Justin Sullivan/Getty Images News

When Walmart reports their fiscal Q4 ’23 financial results before the opening bell on Tuesday morning, February 21, 2023, analyst consensus (per IBES data by Refinitiv) is expecting $1.51 in earnings per share on $159.78 billion in revenue for expected year-over-year (y.y) growth of -1% and +5% respectively.


WMT’s inventory-to-sales ratio (WMT earnings reports )


Walmart EPS estimate revisions (IBES data by Refinitiv )


Walmart revenue revisions (IBES data by Refinitiv )


CPI inflation trending down (Bespoke chart)

Disclosure: I/we have a beneficial long position in the shares of WMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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