4 things to watch in Walmart's Q1 earnings

Walmart (WMT) will release its first quarter earnings on Thursday. Yahoo Finance's Brooke DiPalma breaks down earnings expectations and four key areas investors should watch closely.

The retail giant is expected to report $159.5 billion in earnings and adjusted earnings per share of $0.53. US same-store sales are estimated to rise by 3.42%, boosted by increased foot traffic and ticket size.

DiPalma says she will be watching to see if Walmart continues to hold on to the grocery share gains it made during the pandemic. She is also looking for insight on its new private label brand, Better Goods, which will come at a higher quality and price. Last year, Walmart announced $9 billion in store renovations, and DiPalma hopes to see how the updated stores are performing. Finally, she says she has her eyes on Walmart's e-commerce business as it seeks to compete with the likes of Amazon (AMZN).

For more expert insight and the latest market action, click here to watch this full episode.

This post was written by Melanie Riehl

Video transcript

Wal Mart is gearing up to share another quarter of bulk size results.

Our finances.

Brook Dial is here with what to expect from the retail giant Brook.

Yeah, good afternoon.

All the good times are expected to keep on rolling for Walmart here.

They're expected to hold on momentum in this quarterly results, set to come out for Thursday and market open revenue is expected to increase 5% to $159.58 billion.

That's on adjusted earnings per share of an increase of 7.25% to roughly 53 cents now.

US same source sales are expected to see a slight jump that does include Sam's Club here.

Overall, US same source.

Sales are expected to jump 3.42% and that's expected to be boosted by an increase in foot traffic, a roughly 3% to more consumers heading to Walmart and a roughly 1.3% increase in ticket.

So ultimately, they're spending only a little bit more year over year.

But there are four key things that I'm looking out for in this report.

I want to know if Walmart continued to hold on to those grocery share gains that they made during the pandemic.

I also am looking for more insight on the unveiling of its new private label, Brand Better Goods, which is a higher quality, a bit of a higher cost as well.

Also want to know more on that $9 billion store renovation announcement that they made last year how those renovated stores are doing.

And also Wal Mart continues to invest in digital US E commerce Business is expected to see a 13.33% jump in sales, and also they're really doubling down on retail media.

The company is really looking to compete with Amazon when it comes to advertising, and so really interested to see what the results of this quarter was for Wal Mart Connect.