Walmart shares slide as retailer gives a cautious outlook about consumer spending

Walmart will report quarterly earnings Thursday as the discounter generally outperforms its rivals.

Here’s what Wall Street expects from the retailer, according to consensus estimates from LSEG, formerly known as Refinitiv:

• Earnings per share: $1.52 expected
• Revenue: $159.72 billion expected

As the holidays approach, investors have bet the big-box retailer has the ingredients to drive sales, even as shoppers are more discerning. It’s the nation’s largest grocer, which helps drum up steadier foot traffic.

Walmart has invested in its e-commerce business by expanding its assortment through its third-party marketplace. It’s also making money in newer ways, such as by selling ads and annual memberships to Walmart+, its answer to Amazon Prime.

Shares of the company touched an all-time high Wednesday dating to when Walmart debuted on the New York Stock Exchange in August 1972. The stock closed at nearly $170 on Wednesday, up about 19% for the year.

Target’s performance also lifted Walmart’s stock Wednesday and could bode well for Walmart’s quarter. Target’s sales declined year over year, but it topped Wall Street’s expectations for earnings and revenue.

Walmart has outperformed Target over the past year, leaning on grocery sales and a reputation for low prices.

Michael Baker, a retail analyst for D.A. Davidson, said Walmart has taken market share because it has hit a sweet spot of carrying a heavier mix of basics and building a reputation for value.

But, he added, it could be at risk as it reports earnings again.

“To me, the concern there is, ‘Have expectations gotten to be too high?'” he said.