Walmart Earnings Preview: Inflation Beneficiary, But Covid Victim, Now Trying To Stabilize

Nov. 14, 2022 2:52 AM ETWalmart Inc. (WMT)13 Comments
Brian Gilmartin, CFA profile picture
Brian Gilmartin, CFA


  • Half of WMT's revenue - grocery - has pressured margins thanks to grocery inflation.
  • WMT has also been an inflation beneficiary as "sales per sq foot" have reached 10% y.y twice in the last 4 quarters.
  • Inventory exploded relative to sales growth, which hampers working capital and cash flow for the retail giant.
  • Inventory to sales growth is still out of whack.
  • Listen to what management says about grocery inflation on Tuesday morning.

Walmart store exterior


Walmart (NYSE:WMT) reports its fiscal Q3 '23 earnings before the opening bell on Tuesday morning, November 15th, 2022. (WMT's '23 fiscal year ends January '23.)

Consensus is currently expecting $1.32 in EPS on $147.5 billion in revenue for expected year-over-year growth


WMT sales vs inventory growth (earnings reports)


WMT revenue est trend (IBES data by Refinitiv)


WMT EPS est trends (IBES data by Refinitiv)


WMT weekly chart (Worden Gold)


October CPI (Schwab Research)

This article was written by

Brian Gilmartin, CFA profile picture
Brian Gilmartin, is a portfolio manager at Trinity Asset Management, a firm he founded in May, 1995, catering to individual investors and institutions that werent getting the attention and service deserved, from larger firms. Brian started in the business as a fixed-income / credit analyst, with a Chicago broker-dealer, and then worked at Stein Roe & Farnham in Chicago, from 1992 - 1995, before striking out on his own and managing equity and balanced accounts for clients. Brian has a BSBA (Finance) from Xavier University, Cincinnati, Ohio, (1982) and an MBA (Finance) from Loyola University, Chicago, January, 1985. The CFA was awarded in 1994. Brian has been fortunate enough to write for the from 2000 to 2012, and then the WallStreet AllStars from August 2011, to Spring, 2012. Brian also wrote for, and has been quoted in numerous publications including the Wall Street Journal.

Disclosure: I/we have a beneficial long position in the shares of WMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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