Walmart Leaps Higher on Another Strong Set of Results
Walmart (WMT:US) reported stronger-than-expected results for its first quarter.
While surveyed analysts were expecting the nation’s largest employer to deliver a profit per share of $1.32 on revenue of $148.76 billion, the company posted earnings per share of $1.47 on revenue of $152.3 billion.
“We had a strong quarter. Comp sales were strong globally with eCommerce up 26%. We leveraged expenses, expanded operating margin, and grew profit ahead of sales,” Walmart CEO and President Doug McMillan said in a press release.
Same-store sales rose 7.4% year-over-year, excluding fuel to easily top the average analyst estimate of 5.1%. Walmart’s Sam’s Club witnessed similar growth levels, up 7%.
“We’re seeing in these economic indicators that there is some strain on the consumer, but the resilience has surprised us,” Chief Financial Officer John David Rainey told CNBC.
“And I think that’s in part probably because balance sheets are much stronger than they were pre-pandemic, even at this point.”
Walmart also offered guidance for the ongoing quarter, which sees the big-box retailer reporting profit per share of $1.63 - $1.68, below the $1.71 expected by Wall Street.
On a more positive note, the company boosted its full-year outlook for sales growth to 3.5% while expecting to deliver $6.10 - $6.20 in full-year profit per share.
The Q1 earnings report comes on the back of several Congress members selling shares since the start of 2023. Representatives Ro Khanna, Scott Franklin, Diana Harshbarger and Shri Thanedar, all sold some Walmart shares as they continue to hover around the $145 apiece mark.
