Walmart Beats Q3 Estimates, Raises Guidance; Shares Up 60% YTD to Record High

Nov 19, 2024, 12:11 PM

Walmart Inc. reported strong third-quarter earnings, surpassing analysts' expectations and raising its full-year guidance. The retail giant announced adjusted earnings per share of $0.58, exceeding the consensus estimate of $0.53. Revenue increased by 5.5% year-over-year to $169.6 billion, also beating expectations. U.S. comparable sales excluding gasoline rose 5.5%, with Sam's Club comps up 7%. Gross margin improved by 21 basis points, while operating income increased by 8.2%. E-commerce grew significantly, with Walmart U.S. online sales up 22% and global e-commerce up 27%. The company's advertising revenue increased by 28%, contributing to improved margins. Walmart raised its full-year adjusted EPS forecast to $2.42 to $2.47 from a prior range of $2.35 to $2.43, and lifted its net sales growth outlook to 4.8% to 5.1%. The retailer attributed the robust results to competitive pricing, increased traffic from higher-income shoppers, and positive general merchandise sales. The stock responded positively, climbing approximately 4% in pre-market trading and reaching new all-time highs. Notably, Walmart's shares are up 60% year-to-date, marking its best performance since 1999.