Can Walmart’s Stock Trade Lower Post Q2?

Note: Walmart’s
WMT
FY’2023 ended in January 2023.

Walmart (NYSE: WMT), the world’s largest retailer (by revenue), operating discount stores, supercenters, neighborhood markets, and Sam’s Club warehouses, is scheduled to report its fiscal second-quarter results on Thursday, August 17. We expect WMT stock to likely trade lower with revenue and earnings missing consensus marginally in fiscal second-quarter results. Walmart expects a challenging and uncertain year in FY 2024 ahead of inflation and recessionary fears weighing on consumers. In FY 2024, Walmart sees net sales growing by 3.5%, almost in line with previous years. It should be noted that Walmart owes $49.5 billion in debt and has $10.6 billion in cash and cash equivalents at present. With financing rates significantly higher than in previous years, this significant debt not only increases long-term risk for the retailer but also increases interest costs.