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Walmart (WMT) is scheduled to report results of its second quarter before the market open on Thursday, August 17, with a conference call scheduled for 8:00 am EDT. What to watch for:

GUIDANCE: In May, Walmart forecast Q2 adjusted earnings per share of $1.63-$1.68 on revenue up 4% and operating income down 2%. Analysts currently expect EPS of $1.70 on revenue of $160.19B. For fiscal 2024, Walmart raised its adjusted EPS view to $6.10-$6.20 from $5.90-$6.05 on revenue up 3.5%, up from the prior view of up 2.5%-3%. Analysts currently expect EPS of $6.27 on revenue of $637.47B.

Walmart previously stated that it expected sales growth would be the strongest in the first half of the year and would moderate in the second half.

Stifel anticipates Walmart will report Q2 comp growth and EPS modestly ahead of consensus, reflecting ongoing grocery share gains and pass-through of inflation based pricing offsetting modest weakness in discretionary categories. BofA sees potential upside to its and Street adjusted EPS estimates of $1.65 and $1.68, respectively and its 3% Walmart U.S. comp growth forecast, the analyst tells investors in an earnings preview note. Wells Fargo said Walmart looks set to report another beat and raise despite its growing concern around the macro.

STREET ESTIMATES COULD MOVE TOWARD $6.50: Evercore ISI added Walmart to the firm's "Tactical Outperform List" and believes Street EPS estimates could move towards $6.50 for CY24, and looks for solid traffic, share capture, and margin recovery to drive a beat and raise, the analyst said.

WELL POSITIONED: Credit Suisse said Walmart remains very well positioned for the current environment, as it continues to exhibit solid defensive characteristics, given its value-driven consumables-oriented business in the wake of a volatile consumer backdrop and slowing but elevated inflationary headwinds on the consumer.

Oppenheimer continues to see a strong case for outperformance, especially in a potentially more challenging retail backdrop amid moderating food inflation benefits, new student loan headwinds, and a continued consumer shift near-term toward services. For Q2, Oppenheimer expects another beat and guidance raise for Walmart. Looking beyond this fiscal year, the firm is "increasingly confident" in Walmart's ability to deliver a stronger bottom-line flow-through driven by an improving business mix, continued traction with digital efforts, and financial benefits from an aggressive investment agenda. Walmart remains a top pick at Oppenheimer.

FLIPKART: Walmart paid $1.4B to buy out a large investor in Flipkart, further cementing its control of the Indian e-commerce giant, The Wall Street Journal reported in July. Walmart bought the remaining shares of Flipkart owned by Tiger Global, according to a letter the New York hedge-fund sent to its investors that was reviewed by The Wall Street Journal.

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