Walmart Reports Fiscal Q4 ’25 Financial Results

What to Expect

Walmart is set to release its fiscal Q4 ’25 financial results before the opening bell on February 20, 2025. Analysts are forecasting earnings per share (EPS) of $0.53, revenue of $180.2 billion, and operating income of $6.8 billion. This represents a year-over-year growth of -12% for EPS, +4% for revenue, and -6% for operating income.

Market Performance

Walmart’s “price-to-sales” ratio has been below 1x for 89 consecutive quarters, signaling a consistent undervaluation of the stock. However, in the last two quarters, the price-to-sales ratio exceeded 1x, reaching exactly 1x in the previous quarter. If revenue meets expectations, the ratio will rise to 1.22x on February 20, 2025. Additionally, Walmart’s price-to-earnings (P/E) multiple has expanded from 25x in fiscal Q1 ’24 to 41x in the upcoming Q4 ’24 earnings release. This increase in P/E suggests a potential overvaluation of the stock, indicating a possible correction in the near future.

Implications

The stock market’s reaction to Walmart’s financial results could have significant implications for investors. If the company falls short of expectations, we may see a correction in the stock price to align with its fundamentals. On the other hand, if Walmart exceeds expectations, investors may continue to flock to the stock, driving up its valuation even further.

How It Will Affect Me:

As an investor, Walmart’s financial results can directly impact my portfolio. If the company’s performance disappoints, it may lead to a decrease in the value of my holdings. Conversely, if Walmart surpasses expectations, I could see a positive impact on my investments.

How It Will Affect the World:

Walmart, being one of the largest retail corporations globally, holds significant influence over the economy and consumer behavior. Any major shifts in Walmart’s performance can have ripple effects across the retail industry and beyond. A strong showing by Walmart could signal strength in the overall economy, while a weaker performance may raise concerns about consumer spending and market conditions.

Conclusion

As we await Walmart’s fiscal Q4 ’25 financial results, investors are bracing for potential market reactions. The company’s performance will not only impact individual portfolios but also provide insights into broader economic trends and market sentiment. Stay tuned for the latest updates on Walmart’s earnings release and be prepared for possible market fluctuations.