Before the bell rings, Walmart will report its earnings. Here's what to anticipate.

• Walmart will report earnings before the bell on Thursday.
• The company, as the largest retailer in the nation, is uniquely positioned to provide more clarity on consumer health and economic outlook.
• The big-box retailer has pursued new businesses to fuel growth through advertising and its marketplace.

On Thursday, the company will release its quarterly earnings report, which investors and economists will closely monitor to gain insight into the well-being of American households and the broader economy.

According to consensus estimates from LSEG, analysts anticipate the big-box retailer's performance.

• Earnings per share: 65 cents
• Revenue: $168.53 billion

As the largest retailer in the country, Walmart has a unique ability to provide information on consumer spending habits. Its reputation for offering affordable prices has helped increase sales in recent years, as inflation has led more higher-income shoppers to its stores and online platform.

The consumer price index, which measures prices of a broad mix of goods and services, rose 2.9% last month compared to a year earlier. This is the lowest level since March 2021, indicating that inflation has moderated and returned to historic levels, according to July data from the U.S. Department of Labor.

Prices are currently higher than before the pandemic, causing frustration and strain for consumers. A recent jobs report from the Labor Department raised concerns and led to a stock market sell-off, as growth slowed and the unemployment rate rose unexpectedly.

On Tuesday, some companies reported earnings that exceeded expectations, but warned of slow sales in the second half of the year and consumer caution, even among their wealthier customers.

Shoppers are consistently seeking value and being selective with their spending, as stated by Walmart CEO Doug McMillon and finance chief John David Rainey in multiple quarters.

Retail analyst Steve Shemesh at RBC Capital stated that he, along with other investors, will be eager to hear if the situation remains the same.

He stated that they would search for any shift in tone.

In a challenging economy, Walmart, with its value reputation and large grocery business, is expected to be more resilient than its peers due to customers turning to its stores to save money. The company announced in May that it anticipates being at the high end or slightly above its full-year guidance, which includes net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.

If Walmart fails to meet expectations in the quarter, it could trigger concern, according to Shemesh.

"Walmart's challenges are likely to be even more severe than those faced by the broader investment community," he said.

If Walmart surpasses expectations, investors will need to carefully analyze the earnings report, said he.

If Walmart outperforms, your instincts would indicate 'OK, Walmart outperforms. The consumer is doing well,' he stated. However, he emphasized that the company's impressive results could also be due to affluent customers increasingly relying on Walmart for a broader selection of products.

Walmart has taken steps to boost growth beyond just attracting inflation-weary shoppers. The company has expanded its reach beyond traditional retail channels by adding more sellers to its third-party marketplace, selling more ads, and increasing membership to its subscription service, Walmart+. Additionally, the company launched a new grocery brand, Bettergoods, with most items under $5, including meal solutions like frozen pizzas and chicken wings that could be a cheaper alternative to fast food.

Nearly 31% gains in Walmart's stock this year have outpaced the S&P 500's approximately 14% gains.