Walmart, Inc. | $WMT Stock | Shares Boom On Strong Q2 Sales Growth

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WALMART

Walmart, Inc. (NYSE: WMT)

 

Walmart reported second-quarter revenue and earnings that were above expectations on Thursday, August 16. The Bentonville, Arizona-based retailer said its better-than-expected quarterly performance was fueled by increased online purchases and strong grocery sales.

WMT stock gained more than $8, or 9% in the regular trading session. The shares have lost nearly 8.6% since the beginning of the year, while the Dow Jones Industrial Average has increased almost 1.8%.

WMT Earnings & Outlook

walmart stock chart

The company posted a net loss of $861.0 million, or $0.29 per share, compared to net income of $2.9 billion, or $0.96 per share, in the year-ago quarter. Excluding one-time items, earnings came in at $1.29 per share. Walmart announced sales of $128.0 billion after posting sales of $123.4 billion, in the same quarter last year.

Thompson Reuters, based on analyst estimates, was for adjusted earnings of $1.22 and sales of $126.0 billion. U.S. same-store sales recorded a growth of 4.5%, which was the company’s strongest growth in more than a decade. Seasonal items and clothing sales also played a key role killed in performance during the three months to June 30.

For the fiscal 2019 year Walmart, sees sales growth of 2%, from its earlier forecast of 1.5% to 2% growth. The company expects its U.S. same-store sales to go up by 3% from its previous forecast of 2% growth.

Walmart expects to report earnings of between $2.90 to $3.05 per share, compared to its previous estimate of $4.75 to $5.00 per share. It also expects its adjusted per-share earnings to be in the range of $4.90 to $5.05 versus its prior guidance of $4.75 to $5.00 per share.

Walmart CEO Comments

Commenting during the results, Walmart President and Chief Executive Officer Doug McMillon said, “Thanks to the hard work of our associates, we had a great quarter with strong results and momentum across the business. We’re pleased with how customers are responding to the way we’re leveraging stores and eCommerce to make shopping faster and more convenient. We’re continuing to aggressively roll out grocery pickup and delivery in the U.S., and we recently announced expanded omni-channel initiatives in China and Mexico. Customers have choices and we’re making it easier than ever for them to choose Walmart.”

Walmart, Inc. Company Profile

Walmart, Inc. engages in retail and wholesale business. It operates through the following business segments: Walmart U.S., Walmart International, and Sam’s Club. The Walmart U.S. segment includes retail store and digital retail operations in the U.S.

It also offers financial services and related products such as money orders, prepaid cards, wire transfers, check cashing, and bill payment. The Walmart International segment is categorized into retail, wholesale, and other formats operations outside the U.S.

These categories include supercenters, supermarkets, hypermarkets, warehouse clubs, Sam’s Clubs, cash and carry, home improvement, specialty electronics, apparel store, drug stores, convenience stores, and digital retail.

The Sam’s Club segment comprises membership-only warehouse clubs and samsclubs.com. It offers specialty services, auto buying, pharmacy, optical, hearing aid centers, tire and battery centers, and business operations support services. The company was founded in 1936 by James Lawrence Walton and Samuel Moore Walton. –CNNMoney

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