CIG News – Walmart Earnings Ahead: Eyes On Christmas Results, Future Of Grocery. News provided by Benzinga Tech, The tech sector is the category of the markets relating to the research & development and/or distribution of technological based services as well as goods.
Retail earnings have been trickling out in recent weeks but will begin flooding in soon, with Walmart Inc (NYSE: WMT) among the first big-box merchants to reveal, well, what’s in the box.
Contrary to popular belief, Amazon.com, Inc. (NASDAQ: AMZN) isn't a bigger player in the retail game than WMT. The Arkansas-based chain founded in 1962 still holds the No. 1 spot and has long been among the most widely watched retail bellwethers. It’s likely to be watched closely this coming Tuesday morning (Feb. 18) when it unveils results from its most recent quarter that ended in Jan 2020.
WMT historically has done best during economic down times when consumers are saving nickels and dimes. But as the “Save Money. Live Better.” discount retailer goes head-to-head with AMZN, not to mention its other biggest retail competitor Target Corporation (NYSE: TGT), it appears to be showing that it, too, can roll in the good times
But there are a number of immediate issues and headwinds facing WMT that a number of analysts have said they’ll be looking for insight on: Holiday sales, coronavirus, and grocery sales among them.
FIGURE 1: WALMART VS. CONSUMER STAPLES. Walmart shares (WMT-candlestick) generally led the Consumer Staples sector (IXR-purple line) up until early 2020. In early Jan. 2020 the tides seem to have reversed with IXR outperforming WMT. The uncertainty brought about by the coronavirus may have given a boost to the overall consumer staples sector. Data source: S&P Dow Jones Indices. Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results.
Were The Holidays Happy?
Analysts have remained mostly cautious on WMT’s post-holiday expectations, thanks to TGT. That discount retailer was expected to have a blow-out holiday season, but said it came up short with what TGT Chief Executive Brian Cornell called a “tough miss.” Turns out the quarter proved “even more challenging than expected,” he said in a blog post.
Was that WMT’s Q4 experience too? Overall retail …
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