Walmart posted stronger-than-expected third quarter earnings Tuesday, and boosted its full-year profit outlook, sending shares in the world’s largest retailer to a fresh all-time high.
Walmart (WMT) said said adjusted earnings for the three months ending in October came in at 58 cents a share, up 13.7% from the same period last year and just ahead of the Wall Street consensus analyst forecast of 53 cents a share.
Group revenues, Walmart said, rose 6.6% to $169.6 billion, again topping analysts’ estimates of a $165.71 billion tally. In the U.S., transactions rose 3.1%, with overall ticket prices rising 2.1%
U.S. same-store sales were up 5.3%, well ahead of Wall Street’s 3.9% forecast and the best in six quarters, while online sales also impressed, rising 22% from last year and now representing more than a fifth of overall revenues.
Looking into the current financial year, Walmart sees earnings between $2.42 to $2.47 per share, up from its prior forecast of $2.35 to $2.43.
Net sales are forecast to rise between 4.8% and 5.1%, compared to the group’s prior estimate of between 3.75% and 4.75%.
Walmart it taking a larger market share from price-conscious shoppers in higher income brackets.
Image source: Tim Boyle/Getty Images
The National Retail Federation said last month that it expects U.S. consumers to spend between $979 billion and $989 billion over the holiday period that begins on Thanksgiving and ends on Christmas day, but sees the slowest year-on-year growth rate since before the 2020 pandemic.
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“We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and to transform our business,” said CEO Doug McMillon.
“In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that,” he added. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
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Walmart shares were marked 38% higher in premarket trading immediately following the earnings release to indicate an opening bell price of $87.26 each, a move that would extend the stock’s 2024 gain to around 66%.
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