03:45 PM EDT, 08/19/2025 (MT Newswires) -- Walmart's ( WMT ) fiscal second-quarter results could show upside to comparable sales growth outlook based on recent data, BofA Securities said in note e-mailed Tuesday.

The retail giant is scheduled to release its latest quarterly results Thursday. BofA is projecting US same-store sales to rise 3.5%, while the consensus on Visible Alpha indicates 3.7% growth, according to the note.

BofA said it sees the potential for comparable sales upside as Bloomberg Second Measure observed sales accelerated for the company in the quarter, compared with the brokerage's forecast implying a deceleration. BofA estimates second-quarter adjusted earnings at $0.70 a share versus Wall Street's views for $0.73.

In May, Walmart ( WMT ) posted an unexpected annual increase in first-quarter earnings and maintained its full-year outlook. Chief Executive Doug McMillon warned at the time that the company will have to raise prices due to the impact of tariffs.

Although Walmart ( WMT ) didn't offer an EPS outlook for the second quarter in the light of a dynamic business environment, it is "well positioned" to manage tariffs amid factors such as its scale with suppliers, and advanced pricing, automation, and inventory management, BofA analyst Robert Ohmes wrote.

The brokerage said that it sees continued gross margin expansion in the second quarter, aided by digital advertising and other ancillary businesses.

"(Walmart ( WMT )) in the last year became the first retailer to integrate grocery, general merchandise, and pharmacy in a single order," Ohmes said. "As (Walmart ( WMT )) continues adding convenience, stores are playing a key role and continue to support localized fulfillment advantages versus online peers."

The brokerage maintained its buy rating on the Walmart ( WMT ) stock, with a $120 price objective.

The company's shares were up 0.6% in Tuesday late-afternoon trade. The stock has increased 12% so far this year.

"Share gains continue across product categories and incomes as (the company's) strong value offering and digital convenience resonate," Ohmes said. Walmart's ( WMT ) outlook for long-term profitability continues to improve with support from digital advertising, third-party marketplace, and improvements in "core" e-commerce losses, according to the note.

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