Why Walmart Earnings Were Particularly Strong in Q1
Walmart shares rose somewhat after it released mixed fiscal first-quarter financial results before the markets opened on Thursday.
Walmart Inc. (NYSE: WMT | WMT Price Prediction) released its fiscal first-quarter financial results before the markets opened on Thursday. The company said that it had $1.13 in earnings per share (EPS) and $123.93 billion in revenue, which compares with consensus estimates of $1.02 in EPS and revenue of $124.98 billion. The same period of last year reportedly had EPS of $1.14 on $122.69 billion in revenue.
During the latest quarter, Walmart U.S. comparable sales increased by 3.4% and marked the best first-quarter comps in nine years. Not to mention, this is the fourth consecutive quarter above 3%. Sam’s Club comparable sales increased 0.3%.
Walmart U.S. eCommerce sales grew 37%, reflecting strong growth in online grocery, as well as the Home and Fashion categories. Sam’s Club eCommerce sales grew about 28%.
The company offered no guidance in the report. However, the consensus estimates call for $1.22 in EPS and $130.54 billion in revenue for the fiscal second quarter.
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Doug McMillon, president and CEO of Walmart, commented:
We’re changing to enable more innovation, speed and productivity, and we’re seeing it in our results. We’re especially pleased with the combination of comparable sales growth from stores and eCommerce in the U.S. Our team is demonstrating an ability to serve customers today while building new capabilities for the future, and I want to thank them for a strong start to the year.
Shares of Walmart closed Wednesday at $99.88, in a 52-week range of $81.78 to $106.21. The consensus price target is $108.47. Following the announcement, the stock was up about 2% at $101.88 in early trading indications Thursday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
