Walmart posted stronger-than-expected third-quarter earnings Tuesday and boosted its full-year profit outlook, sending shares in the world's largest retailer to a fresh all-time high.
Walmart's (WMT) adjusted earnings for the three months ended in October came in at 58 cents a share, up 13.7% from the same period last year and just ahead of the Wall Street consensus analyst forecast of 53 cents a share.
Group revenue rose 6.6% to $169.6 billion, again topping analysts' estimates of a $165.71 billion tally, with U.S. transactions rising 3.1% and overall ticket prices up 2.1%.
U.S. same-store sales were up 5.3%, well ahead of Wall Street's 3.9% forecast and the best in six quarters. Online sales also impressed, rising 22% from a year earlier and now representing more than a fifth of overall revenue.
Looking into the current financial year, Walmart sees earnings between $2.42 to $2.47 per share, up from its prior forecast of $2.35 to $2.43.
Net sales are forecast to rise between 4.8% and 5.1%, compared with the group's prior estimate of between 3.75% and 4.75%.
Image source: Tim Boyle/Getty Images
Walmart holiday sales surge on deck
The National Retail Federation said last month that it expected U.S. consumers to spend between $979 billion and $989 billion over the holiday period that begins on Thanksgiving and ends on Christmas Day, the slowest year-on-year growth rate since before the 2020 pandemic.
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"We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and to transform our business," said CEO Doug McMillon.
"In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that," he added. "Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
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Walmart's stock price hits an all-time high
Walmart shares were marked 3.3% higher in early trading immediately following the earnings release, changing hands at $86.94 each. This move would extend the stock's 2024 gain to around 66%.
If it closes at these levels, it will set an all-time stock price high for the retail giant.
"Everything seems to be on track for that longer term, multi-year trajectory for Walmart transforming from what people think is the traditional brick and mortar, older model of a retailer into more of a futuristic omni channel retailer," said Justin McAuliffe at Gabelli Funds.
"Comparatively higher income households certainly have stronger spending power, and they’re impacted relatively less than lower-income households," he added. "The fact that Walmart has such a significant physical footprint is a point of differentiation for them, and they're able to leverage their brick-and-mortar stores for that last mile delivery."
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