Walmart (WMT) is scheduled to report results of its first quarter before the market open on Tuesday, May 17, with a conference call scheduled for 8:00 am EDT. What to watch for:

GUIDANCE: In February, Walmart said it expected its Q1 operating income and earnings per share to be down low double digits to low teens. At the same time, the company forecast second quarter and third quarter operating income and EPS to be up low to mid single-digit rates. It sees higher growth rates in the second half of the year. Analysts currently expect Walmart to report Q1 EPS of $1.48 on sales of $138.88B.Meanwhile, Walmart also said it expects fiscal 2023 EPS growth in the mid single digits on consolidated net sales up about 3% in constant currency, and up about 4% ex-divestitures. EPS growth, excluding divestitures, should increase 5%-6%, Walmart said. It also sees FY23 Walmart U.S. SSS growth slightly above 3% ex-fuel. Analysts currently expect FY23 EPS of $6.76 on revenue of $591.18B.

Concerns around the U.S. consumer, particularly the lower-end, have been heightened significantly as recessionary fears "rule the day," Katai tells investors in a research note. Solid underlying fundamentals observed in Q1 "could mean nothing as long as fears around a slowing consumer prevail," says the analyst.

EXECUTIVE CHANGES: In April, Walmart named PayPal's (PYPL) John Rainey as its chief financial officer, effective June 6. John has a proven track record of leading change at scale in customer service organizations innovating in their fields," said Walmart President and Chief Executive Officer Doug McMillon.  

Morgan Stanley analyst Simeon Gutman called the move "a high quality hire" given positives that include a strong reputation, a fintech/tech background, and his established CFO track record at two large public companies. However, Gutman also highlighted that Rainey lacks direct retail experience and omni-channel/store operational expertise. The analyst added that he is "surprised and encouraged" that Walmart is hiring an outsider as CFO in a departure from recent history.

HIRING AND PAY: In March, Walmart said it planned to hire more than 50,000 U.S. associates in its stores, clubs, campuses and supply chain facilities, as well as "thousands" into its global tech organization while adding new hubs in Toronto and Atlanta. In April, Walmart said it would raise pay for its fleet of roughly 12,000 truck drivers, indicating that drivers can now make up to $110,000 in their first year with the company.

The Wall Street Journal reported that despite $200,000 a year pay, the tight labor market and competition for workers is creating another challenge for Walmart to find store managers. Many managers leading the company's roughly 4,700 U.S. stores have been in their roles for at least a decade, and Walmart executives say they need to find a new generation to replace them, and the company has created a program to recruit and train college graduates to become store managers, promising a starting wage of at least $65,000 a year and an accelerated two-year track into the top store job.

ONE COULD GENERATE $1.6B IN REVENUE: Morgan Stanley's Gutman said he believes that Walmart's Fintech startup, ONE, is creating an "affordable and broadly accessible digital platform" and that he expects ONE to drive greater customer engagement and brand affinity to Walmart's core retail business. The analyst, who thinks a "a financial services super app" from ONE can theoretically be a roughly $1.6B revenue opportunity for Walmart and could generate profit on a standalone basis, believes the market is increasingly paying attention to Walmart's growing list of alternative revenue streams, which also include advertising, healthcare, fulfillment/delivery services, and its third-party marketplace.

GREEN INITIATIVES: Plug Power (PLUG) announced an agreement with Walmart for an option to deliver up to 20 tons per day of liquid green hydrogen to power material handling lift trucks across Walmart distribution and fulfillment centers in the U.S. Plug Power CEO Andy Marsh said he expects the company to expand the commitment with Walmart and supply more than 20 tons per day of green hydrogen at "some point."