Erste Group Bank Reduces Earnings Estimates for Walmart

Key Points

• Erste Group Bank lowered Walmart’s FY2027 earnings estimate to $2.88 per share from $2.89 and maintained a “Hold” rating. Its FY2028 estimate is $3.20 per share, broadly in line with the current FY2027 consensus of $2.87.
• Walmart’s latest quarterly results exceeded expectations, with EPS of $0.81 versus the $0.74 consensus and revenue of $187.94 billion versus $186.64 billion expected. Revenue rose 5.9% year over year, while management issued FY2027 EPS guidance of $2.80 to $2.87.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $131.88, although the stock opened at $103.09 and remains below its 50-day and 200-day moving averages. Recent insider sales were conducted under pre-arranged plans, including a $5.3 million sale by an executive to cover tax obligations.

Walmart Inc. (NASDAQ:WMT - Free Report) - Erste Group Bank reduced their FY2027 earnings estimates for Walmart in a research report issued to clients and investors on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now expects that the retailer will earn $2.88 per share for the year, down from their previous forecast of $2.89. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Walmart's current full-year earnings is $2.87 per share. Erste Group Bank also issued estimates for Walmart's FY2028 earnings at $3.20 EPS.

Several other equities analysts also recently issued reports on WMT. KeyCorp reissued an "overweight" rating on shares of Walmart in a report on Wednesday, August 12th. Weiss Ratings downgraded shares of Walmart from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, July 31st. Cantor Fitzgerald raised shares of Walmart to a "buy" rating in a research note on Friday, August 21st. Citigroup decreased their target price on shares of Walmart from $147.00 to $132.00 and set a "buy" rating for the company in a research report on Friday, August 21st. Finally, BMO Capital Markets restated an "outperform" rating and issued a $126.00 price target on shares of Walmart in a research note on Friday, August 21st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $131.88.

Walmart Stock Performance

Shares of NASDAQ WMT opened at $103.09 on Monday. Walmart has a 12-month low of $95.79 and a 12-month high of $135.15. The company has a market cap of $820.40 billion, a price-to-earnings ratio of 37.22, a price-to-earnings-growth ratio of 3.92 and a beta of 0.61. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41. The stock's 50 day simple moving average is $111.90 and its 200 day simple moving average is $120.39.

Walmart (NASDAQ:WMT - Get Free Report) last issued its earnings results on Thursday, August 20th. The retailer reported $0.81 EPS for the quarter, beating analysts' consensus estimates of $0.74 by $0.07. The company had revenue of $187.94 billion during the quarter, compared to the consensus estimate of $186.64 billion. Walmart had a return on equity of 21.83% and a net margin of 3.00%.Walmart's quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.68 earnings per share. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS.

Insider Buying and Selling at Walmart

In related news, EVP Daniel Danker sold 50,644 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total transaction of $5,335,345.40. Following the completion of the sale, the executive vice president directly owned 201,672 shares of the company's stock, valued at $21,246,145.20. This represents a 20.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Christopher James Nicholas sold 2,900 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $106.34, for a total value of $308,386.00. Following the sale, the executive vice president directly owned 569,153 shares of the company's stock, valued at approximately $60,523,730.02. This represents a 0.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 77,292 shares of company stock valued at $8,421,143 over the last 90 days. Insiders own 0.09% of the company's stock.

Institutional Trading of Walmart

Several institutional investors have recently made changes to their positions in WMT. MFA Wealth Services grew its stake in Walmart by 0.7% during the first quarter. MFA Wealth Services now owns 10,909 shares of the retailer's stock valued at $1,356,000 after acquiring an additional 80 shares in the last quarter. Realta Investment Advisors raised its holdings in shares of Walmart by 2.0% in the 1st quarter. Realta Investment Advisors now owns 4,089 shares of the retailer's stock valued at $508,000 after acquiring an additional 81 shares in the last quarter. Compton Financial Group LLC raised its stake in Walmart by 4.1% in the first quarter. Compton Financial Group LLC now owns 2,081 shares of the retailer's stock valued at $259,000 after purchasing an additional 82 shares in the last quarter. Renaissance Group LLC lifted its position in Walmart by 0.9% during the fourth quarter. Renaissance Group LLC now owns 9,636 shares of the retailer's stock valued at $1,074,000 after purchasing an additional 83 shares during the last quarter. Finally, Calton & Associates Inc. grew its position in Walmart by 0.3% in the fourth quarter. Calton & Associates Inc. now owns 27,220 shares of the retailer's stock worth $3,033,000 after acquiring an additional 84 shares in the last quarter. 26.76% of the stock is currently owned by institutional investors and hedge funds.

More Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s fiscal second-quarter results showed continued momentum beyond traditional store sales: revenue reached approximately $187.9 billion, global e-commerce grew 23%, and advertising revenue increased 38%. These higher-growth businesses could support future margins and cash flow. Walmart Growth Engine Hums
• Positive Sentiment: Analysts and commentary continue to point to Walmart’s expanding e-commerce, digital advertising, memberships, convenience-led fulfillment, automation and AI initiatives as reasons the recent decline could represent a long-term buying opportunity. Walmart’s scale and value-focused pricing remain important competitive advantages. Walmart Continues to Grow Beyond Retail
• Neutral Sentiment: Walmart settled a U.S. Justice Department lawsuit alleging that its pharmacies unlawfully contributed to the opioid epidemic. Resolving the case removes an overhang and reduces legal uncertainty, although the financial terms and any broader implications remain important for investors. Walmart Settles U.S. Opioid Lawsuit
• Negative Sentiment: Recent coverage highlights a potentially tougher consumer environment. Walmart’s comparable sales growth was 3.4% excluding pharmacy-related items, while middle-income shoppers appear increasingly focused on necessities and limiting discretionary purchases. Walmart and Home Depot Results
• Negative Sentiment: Investors are also questioning whether Walmart’s valuation adequately reflects its strong performance. A high earnings multiple, slower core sales growth and the stock’s position below its moving averages have amplified the impact of the recent selloff. Walmart Selloff Analysis
• Negative Sentiment: Executive Vice President Daniel Danker sold 50,644 shares worth approximately $5.3 million. The sale was made under a pre-arranged Rule 10b5-1 plan to cover taxes on vested equity awards, making it a weaker bearish signal than discretionary insider selling. Walmart Insider Trading Filing

About Walmart

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.

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