Walmart Beats EPS Expectations as Analysts Lower Price Target

Walmart Inc.'s (NASDAQ: WMT) latest quarterly results have left investors with mixed feelings, despite the company beating earnings per share expectations by 7.7%. The retail giant's revenue of $188 billion was in line with analysts' predictions, but its statutory profit of $0.80 per share exceeded forecasts.

The reaction to Walmart's results has been reflected in the stock price, which dropped 10% to $104 over the past week. However, analysts remain optimistic about the company's future prospects, with 37 experts forecasting revenue growth of 2.2% and earnings per share increasing by 3.8% in 2027.

The consensus price target for Walmart has fallen by 6.9% to $128, suggesting that analysts may have been overestimating the company's valuation. Nevertheless, the range of estimates remains relatively narrow, with the most optimistic analyst predicting a share price of up to $155 and the most pessimistic forecasting as low as $81.

In terms of revenue growth, Walmart is expected to continue on its current trajectory, with analysts predicting 4.5% annualized growth by the end of 2027. This is in line with the company's past performance, which has seen 5.4% annual growth over the past five years.