Walmart (WMT) Stock Price and Forecast: Walmart reports earnings beat on EPS and revenue

Walmart releases earnings before the market opens on Tuesday.
WMT stock earnings will be joined by fellow retailer Home Depot.
Markets look to Home Depot and Walmart for signs of life in the US consumer.

Ivan Brian FXStreet

Update: Walmart's (WMT) stock quote is now heading for another look at the double top formation with resistance at $152.10. Earnings were strong with a beat on top and bottom lines. EPS was $1.45 versus $1.40 expected. Revenue came in at $140.5 billion versus $135.6 billion expected. The shares are trading at $149.38 for a gain of 1.7% in the premarket.

Walmart (WMT) stock slipped on Monday ahead of its earnings report, which is due on Tuesday before the market opens. Home Depot (HD) stock has not been so tardy as it sits just below recent highs. HD stock too reports earnings today. Both will be key for a view of the health of US consumer spending with Lowe's (LOW) due up on Wednesday.

Walmart (WMT) stock graph, 15-minute

Walmart (WMT) stock news

Earnings are due out at 7 am EST /12 GMT on Tuesday, followed by an earnings conference call at 8 am EST / 1300 GMT. The link for the conference call can be found here. The stock has slid back a bit of late before the earnings release.

Earnings per share (EPS) is expected to come in at $1.40, while revenue is expected to hit $135.6 billion for the third quarter. Some interesting news to note is the Saudi Arabia Public Investment Fund (PIF) has nearly tripled its exposure to US equities in the last quarter with WMT being one of the additions. An SEC filing shows that in Q3 the PIF holds $43.45 billion, up from $16 billion in the previous quarter. However, most of the increased exposure is due to the Saudi Arabia PIF owning a large stake in Lucid Motors (LCID), which IPO'd in July.

The Saudi PIF has a stake in Walmart of 1.7 million shares.

Walmart (WMT) stock forecast

The major worry we would have is the appearance of a double top between both sets of earnings. There is a lot of resistance around this $152 zone, including going back to November of last year. If this is accurate and earnings confirm the retracement, the target is the 200-day moving average at $141.29. From there to $140 is strong support with a high volume profile bar and the point of control at $139.48. Breaking the $152 resistance would take Walmart (WMT) into unchartered record highs with little resistance in sight.

WMT 1-day chart

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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