Walmart Inc. (NYSE:WMT) reported Q1 results, with revenue of $141.6 billion coming in better than the consensus estimate of $138.88 billion.
While the company maintained top-line momentum, comments about consumer trade down and elevated general merchandise inventory levels are semi-concerning. Analysts at RBC Capital expect inflation-led pricing to continue to support the top-line near-term but they will be paying close attention to elasticity levels – especially in more discretionary categories.
While the quarterly results and the 2023 EPS guidance of only 1% decline were a little disappointing, the analysts believe the company is one of the ‘safest’ plays in an uncertain macro environment. The analysts maintained their outperform rating but lowered their price target to $153 from $160.
About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Each week, approximately 220 million customers and members visit approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. With fiscal year 2021 revenue of $559 billion, Walmart employs 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.
