Walmart (WMT) is expected to post “solid” fiscal fourth-quarter results and gain further market share in the grocery, health and wellness, and e-commerce categories, UBS Securities said Monday. The retail giant is scheduled to report fourth-quarter results Feb. 20. UBS raised its adjusted earnings outlook to $1.70 per share from $1.62 and expects revenue to grow 4.4% year over year to $171.28 billion. Wall Street is looking for adjusted EPS of $1.63 on revenue of $170.31 billion, according to the brokerage. “We believe (Walmart) generated good momentum in (the fourth quarter) despite the topsy-turvy spending backdrop throughout the period,” UBS analysts Michael Lasser, Zeyn Burak and Mark Carden said in a note. The company’s latest quarterly results and guidance “should provide more optimism on the sustainability of its recent share gains and its future potential,” the analysts said. UBS increased its US fourth-quarter same-store sales estimate to 3% from 2.5%. […]

Walmart (NYSE: WMT) generated a good momentum in the 4Q despite the confusing spending backdrop experienced during the period, so its upcoming 4Q print and FY outlook should provide more optimism on the sustainability of its recent share gains, UBS analysts say in a research note. The biggest U.S. retailer should benefit from its defensive characteristics and idiosyncratic sales and profit drivers as it expands its marketplace, analysts say. “We think the company may provide more detail on its alternative profit story that could keep the stock’s valuation trading at a premium,” analysts add.