Walmart Beats Q3 Estimates with $0.58 EPS, Raises Outlook; Stock Hits Record High

Nov 19, 2024, 12:10 PM

Walmart Inc. reported stronger-than-expected third-quarter earnings, with adjusted earnings per share of $0.58 surpassing analysts' estimates of $0.53. Revenue reached $169.59 billion, exceeding expectations of $167.5 billion. The retailer's U.S. comparable sales increased by 5.3%, marking the highest growth in six quarters, driven by strong demand for toys and a solid performance in general merchandise. E-commerce sales saw significant growth, with Walmart U.S. e-commerce up 22%, Walmart International up 43%, and Sam's Club up 26%. Operating income rose 8.2%, and net income surged by 910.4%. The company is attracting higher-income shoppers and noted that discretionary sales are growing. Walmart's advertising revenues also contributed to its performance. The company raised its full-year guidance, now expecting adjusted EPS of $2.42 to $2.47, up from the prior outlook of $2.35 to $2.43, and forecasting net sales growth of 4.8% to 5.1%, higher than the previous estimate of 3.75% to 4.75%. Walmart's stock has surged 60% year-to-date, outperforming the S&P 500's 23% gain, and is testing new all-time highs.