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Walmart Faces Q2 Earnings Test Before Thursday Open

Investors want clear evidence that faster growth in e-commerce, advertising and memberships plus heavy buybacks can justify a roughly 40x valuation.

Overview

  • Walmart will report Q2 results before the market opens on Thursday, Aug. 20, with Wall Street consensus at $0.74 adjusted EPS and $186.62 billion in revenue.
  • Options traders expect about a 5% post‑earnings swing and show a bearish skew with a 1.56 put‑to‑call ratio, signaling limited room for disappointment.
  • Prediction‑market odds sit near 75–76% that Walmart will beat estimates, reflecting optimism about the company’s higher‑margin businesses.
  • Walmart’s recent quarter saw e-commerce up about 26%, advertising up roughly 37% and membership fees up about 17%, and the company has raised its dividend and authorized a $30 billion buyback.
  • The stock trades at nearly 40x earnings, so investors will focus on management’s guidance for margins and cash flow because weak forward signals could cause sharp share volatility and alter the case for retirees seeking income from dividends and buybacks.