Walmart (WMT.US) shares climbed approximately 4.42% in premarket trading after the retail giant reported better-than-expected third-quarter results and raised its full-year outlook, driven by robust consumer spending. The company's strong performance was particularly notable among higher-income shoppers, with households earning over $100,000 annually accounting for about 75% of market share gains.
Q3 Results vs. Consensus:
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Open account Try demo Download mobile app Download mobile app- Adjusted EPS: $0.58 vs. $0.53 expected (+9.62%)
- Revenue: $169.59B vs. $167.49B expected (+1.12%)
- Total US comp sales ex-gas: +5.5% vs. +3.8% expected
- Walmart US comp sales ex-gas: +5.3% vs. +3.73% expected
- Sam's Club US comp sales ex-gas: +7.0% vs. +4.22% expected
Updated FY2025 Guidance vs. Prior:
- Adj. EPS: $2.42-2.47 vs. $2.35-2.43 prior (consensus: $2.45)
- Net sales growth: +4.8-5.1% vs. +3.75-4.75% prior
- Adj. operating income growth ex-fx: +8.5-9.25%
The retail giant reported adjusted earnings per share of 58 cents, handily beating analyst expectations of 53 cents. Revenue rose 5.5% year-over-year to $169.59 billion, surpassing Bloomberg's consensus estimate of $167.49 billion. U.S. comparable sales excluding gas increased 5.3%, significantly outperforming analyst projections of 3.73%, while Sam's Club saw even stronger comparable sales growth of 7%.
Looking ahead, Walmart raised its full-year guidance, now expecting adjusted earnings per share of $2.42 to $2.47, up from its previous forecast of $2.35 to $2.43. The company also boosted its net sales growth outlook to 4.8%-5.1%, up from 3.75%-4.75% previously.
Chief Financial Officer John David Rainey noted that while consumers remain selective in their spending, they continue to shop consistently, particularly during seasonal events. The company's e-commerce initiatives, including the recent addition of pre-owned watches and collectible sneakers, have helped drive online sales to approximately 18% of total business.
Despite macroeconomic uncertainties and a shorter holiday shopping season, Walmart has maintained strong momentum, with its stock up nearly 60% year-to-date. However, challenges remain, including currency fluctuations that resulted in a $1.2 billion negative impact during the quarter, and softer clothing sales attributed to warm weather.
The stock is trading at an all-time high of $87.55 per share in premarket.
Source: xStation
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