Walmart seen generating 9% Q1 U.S. comp

Credit Suisse says it remains constructive on Outperform-rated Walmart (WMT -0.2%) as the retailer’s Q1 earnings report approaches.

Analyst Seth Sigman: “We raise our comps estimates for 1H, although we lower EPS to reflect incremental margin pressures/ cost headwinds/ FX. Based on our work, we are more confident in sales outlook past Q1 (incl the potential for comps to reaccelerate from the recent Apr. trend), while we also believe that WMT will be better positioned to navigate what could be very choppy consumer waters ahead, and benefit med/long-term from significant share gains from the structural changes in shopping behavior we are seeing.”

Sigman forecasts Q1 U.S. comparables sales will be up 9.3% vs. +5.5% prior forecast and +3.5% consensus. He also says Walmart is just starting to see a benefit from government stimulus.

https://seekingalpha.com/news/3568414-walmart-seen-generating-9-q1-u-s-comp