Walmart reported booming online sales and raised its outlook, sending shares higher ahead of the opening bell.
The world’s largest retailer reported mixed results as earnings beat Wall Street projections and revenue lagged. Walmart raised its full-year sales forecast as it prepares for the crucial holiday season.
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Walmart earned $3.29 billion, or $1.15 a share, beating the $3.1 billion that analysts projected. Adjusted earnings of $1.16 beat the $1.09 average estimate in a survey by Refinitiv.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 120.98 | +1.86 | +1.56% |
Revenue came in at $128 billion, up 2.5 percent versus a year ago, missing the $128.6 billion that analysts were anticipating.
The retail giant said U.S. comparable sales rose 3.2 percent, excluding fuel, beating the 3.1 percent growth that was expected. Online sales jumped 41 percent amid strength in groceries.
“We continue to see good traffic in our stores,” CEO Doug McMillon said. “We’re growing market share in key food and consumables categories, including fresh, and we had positive comps in general merchandise.”
Sam’s Club comp sales increased by 0.6 percent YoY as its e-commerce business saw sales grow 32 percent.
Walmart International sales rose 1.3 percent versus a year ago despite Brexit concerns continuing to “negatively affect customer spending patterns.” Unrest in Chile “seriously affected” business in the country.
Walmart said its next-day delivery service now covers about 75 percent of the U.S. population. The retailer has been engaged in a delivery race against Amazon to provide consumers with the fastest service possible at the lowest price.
“Looking ahead, we’re prepared for a good holiday season,” McMillon said.
Walmart now expects high single-digit gains in full-year adjusted earnings per share, excluding Flipkart. Previously, the company said adjusted earnings would be up or down slightly. Wall Street analysts were looking for 0.3 percent growth.
The company’s shares have climbed more than 29 percent this year.
This story is developing. Check back for updates.
