Tuesday's Market Minute: Walmart (WMT) & Target (TGT) Earnings

Walmart is up before the bell this morning after its 2Q earnings beat estimates on the top and bottom line. EPS was $1.77, a cent lower than the same quarter last year, but revenue of $152.9 billion was 8.4% higher than last year’s. The company also kept its guidance for the last half the year, expecting sales to grow around 4.5%.

Comp sales grew in the U.S. and internationally, and Walmart says Sam’s Club membership is at an all-time high. Walmart also reported that it gained share in categories like grocery as consumers faced inflationary pressures, although more grocery sales, which are lower margin, ate into its profit. 

Target, which is more expensive than Walmart – though not by much – reports its 2Q tomorrow morning. While the stock is trading higher in sympathy with Walmart this morning, investors should consider whether its earnings will spark the same joy.

Target’s stock cratered after its last earnings report disappointed (though it’s now been climbing since a late-June low), and the market share Walmart gained has to come from somewhere – is it from Target?

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