Does Walmart Deserve More Credit for Q3 Results?
Walmart released better than expected fiscal third-quarter financial results before the markets opened on Thursday.
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Walmart Inc. (NYSE: WMT | WMT Price Prediction) released its fiscal third-quarter financial results before the markets opened on Thursday. The company said that it had $1.16 in earnings per share (EPS) and $128.0 billion in revenue, which compares with consensus estimates of $1.09 in EPS and revenue of $128.65 billion. The same period of last year reportedly had EPS of $1.08 on $124.89 billion in revenue.
During the latest quarter, Walmart U.S. comparable sales increased by 6.6% on a two-year stacked basis. Market share gains in the business were led by food and consumables, including fresh. Sam’s Club comparable sales increased 0.6%.
Walmart U.S. eCommerce sales grew 41%, reflecting strong growth in online grocery. Sam’s Club eCommerce sales grew about 32%.
In terms of guidance, Walmart expects that fiscal 2020 EPS will increase slightly compared to 2019. However, the consensus estimates call for $4.93 in EPS and $526.25 billion in revenue for the year.
Doug McMillon, president and CEO of Walmart, commented:
We’re pleased with our performance for the quarter. Our associates are responding to change in an inspiring way, and we’re proud of them. The Walmart U.S. business saw strong comp sales and expense leverage, and operating income grew for the sixth consecutive quarter. We also celebrated the first anniversary of Flipkart and PhonePe as part of the Walmart family. It was great to see record sales in India during The Big Billion Days event. Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers. Our associates are working hard to ensure we succeed – one customer, one interaction at a time.
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Shares of Walmart closed Wednesday at $120.98, in a 52-week range of $85.78 to $121.36. The consensus price target is $123.75. Following the announcement, the stock was up nearly 2% at $123.00 in Thursday’s early trading indications.
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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.
