Walmart's fiscal year 2025 annual report or earnings release.

Walmart Raises Guidance After Q3 EPS Beats; E-commerce Now 18% of Business, Stock Hits Record High

Nov 19, 2024, 12:31 PM

Walmart Inc. reported robust third-quarter fiscal 2025 results, surpassing analysts' expectations and raising its full-year guidance. The company's adjusted earnings per share (EPS) were $0.58, exceeding the consensus estimate of $0.53. Total revenue increased 5.5% year-over-year to $169.6 billion, beating forecasts of $167.5 billion. U.S. comparable sales excluding fuel rose by 5.3%, outpacing the expected 3.8% growth, with general merchandise sales turning positive. E-commerce sales grew significantly, with Walmart U.S. e-commerce up 22%, contributing to e-commerce now representing 18% of the company's overall business. Global e-commerce sales increased 27%, including a 43% surge in international e-commerce and a 26% rise at Sam's Club. Digital advertising revenue also grew by 28%. Operating income rose by 8.2% to $6.7 billion, and by 9.8% on a constant currency basis, aided by a 21 basis point improvement in the consolidated gross margin rate and higher membership income. Inventory levels were down 1% while sales grew, indicating efficient inventory management. In light of these strong results, Walmart raised its full-year guidance, now expecting adjusted EPS of $2.42 to $2.47, up from the previous range of $2.35 to $2.43, and net sales growth of 4.8% to 5.1%, higher than prior guidance of 3.75% to 4.75%. The company also increased its expected adjusted operating income growth to 8.5% to 9.25%. The stock rose approximately 4% in pre-market trading, hitting a record high and marking a 60% increase year-to-date. Additionally, Sam's Club U.S. comparable sales excluding fuel increased by 7%.