Walmart and Target is in focus for me this week. Two corporations in the same business but also very different. Walmart is a giant while Target is smaller with more growth potential. Walmart will report earnings on Tuesday before the market opens. Target on Wednesday.
Walmart`s EPS forecast for the quarter is $1,21. The reported EPS for the same quarter last year was $1,18. The consensus EPS forecast for Target`s quarter is $2,11 vs $0,59 for the same quarter last year.
The numbers for Target looks better than the giant Walmart, but the number as a whole will also give us more information about the consumer spending during the Covid-19 pandemic recovery.
Walmart has been one of the big winners thanks to the pandemic, and reported record fourth-quarter and fullyear sales in February. However, the momentum slowed down in the first three months of the year. So, two more rounds of direct checks to most Americans didn`t help this time.
Analysts expect to see Walmart`s revenue dip 2% but earnings to rise by 4%. The company has been shelling out additional capital to raise wages for workers and build out its relationships with shoppers.
Walmart will spend nearly $14 billion in the current fiscal year to build out supply chain capacity and automation to keep pace with demand. Investors will look at Walmart`s newer initiatives in this week`s earnings report.
Target is smaller but grow faster. The company is expected a growth of 10,1% from the prior-year reported figure. It`s also estimated a big jump for Target`s earnings on Wednesday. EPS has risen to $2,11 which is a sharp improvement from 59 cents from a year ago.
Target is also one of the biggest winners during the pandemic, and its one-stop shopping destinations has been a big success. Same-day delivery of in-store purchases and fast track technology improvements has also been a great success for Target.
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Shiny bull 