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Walmart (WMT) is scheduled to report results of its third quarter before the market open on Thursday, November 16, with a conference call scheduled for 8:00 am EDT. What to watch for:

GUIDANCE: In August, Walmart forecast Q3 adjusted earnings per share of $1.45-$1.50 on revenue up 3% and operating income up 1%. Analysts currently expect EPS of $1.52 on revenue of $159.55B. For fiscal 2024, Walmart raised its adjusted EPS view to $6.36-$6.46 from $6.10-$6.20 and its revenue view to up 4%-4.5% from up 3.5%. Analysts currently expect EPS of $6.48 on revenue of $642.36B.

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.

HIGHEST CONVICTION CALL: Jefferies this week updated its models to reflect quarter-to-date trends seen in its alternative data sets for value retailers and said its "highest conviction call heading into the prints" from the group is for stronger-than-expected U.S. comp sales and EPS at Walmart.

Walmart continues to benefit from consumers pursuing value pricing and continues to gain market share driven by its value, convenience, expanding grocery offerings and ongoing digital initiatives, said Tigress Financial.

ANOTHER BEAT AND RAISE: Stephens thinks Walmart should begin to see margins improve as top line momentum continues and the company anniversaries significant investments made last year, raised its estimates for fiscal Q3 and FY24 and thinks "another beat and raise is coming for the company."

BROAD-BASED MOMENTUM: Similar to recent quarters, Oppenheimer expects continued broad-based momentum throughout the enterprise, including in the Walmart U.S. grocery and health/wellness categories, to fuel another above-plan delivery. Oppenheimer expects management's Q4 guidance to at least match a Street forecast of $1.66. Amid current "peakish relative valuation parameters," upbeat investor sentiment, and significant outperformance lately, the firm would be positioned to take advantage of any profit-taking should it materialize vs. playing for a positive catalyst. Walmart shares remain a top pick, Oppenheimer said.

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