Walmart raises full-year outlook after earnings beat; shares dip
Walmart (WMT) posted stronger-than-expected profits and sales on Thursday, as the world’s largest retailer continues to post growth despite an uncertain consumer environment that has pressured some of its competitors.
The company posted adjusted earnings per share of $0.62, topping Wall Street’s expectation of $0.60, according to Bloomberg data. Revenue rose 6% year-on-year to $179.5 billion, ahead of the $177.6 billion forecast, News.Az reports, citing foreign media.
Same-store sales in the U.S. also exceeded projections, increasing 4.5% versus the expected 4% rise. Walmart reported a 1.8% increase in foot traffic and a 2.7% rise in average ticket size at its U.S. stores.
Raising its full-year outlook, Walmart now expects net sales to grow 4.8%–5.1%, up from its previous estimate of 3.75%–4.75%. Adjusted earnings are forecast in the range of $2.58–$2.63, compared with prior guidance of $2.52–$2.62.
Sam’s Club, the company’s wholesale division, grew 3.8%, slightly below Wall Street’s expectation of 4.8%. Global eCommerce sales climbed 27% in the quarter.
Walmart said capital expenditures are expected to reach 3.5% of net sales for the year, hitting the upper end of its earlier 3%–3.5% projection.
Despite the positive results, Walmart shares fell around 2% in early trading following the announcement.
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