BMO Capital on Walmart (WMT): '3Q Beat, but Not Enough for High Expectations Today'
BMO Capital analyst Kelly Bania reiterated an Outperform rating and $180.00 price target on Walmart (NYSE: WMT)
The analyst comments "WMT F3Q24 was a beat and raise but was up against very high investor expectations, and we estimate the magnitude of both the beat and raise was below expectations. We rate WMT shares Outperform with a $180 target price. WMT reported F3Q24 adjusted EPS of $1.53 (1.7% y/y) in between our $1.54, consensus $1.52 estimate, and slightly ahead of guidance for $1.45-1.50. Similar to prior quarters, we believe investor expectations were for a more sizable beat. Consolidated gross margin came in at 23.99% (+32bps y/y) above our 23.6% and consensus 23.9%. Constant currency EBIT grew +0.3% y/y, below WMT's plan of 1%, and our 4.8% y/y estimate. We estimate EBIT was burdened by a ~$95mm unexpected legal charge in 3Q, implying underlying CC-EBIT growth of ~2.5% y/y and a $0.02 EPS impact."
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Shares of Walmart closed at $169.78 yesterday.