Walmart (WMT) announced its third quarter results premarket today and reaffirmed the CWEB report that the giant retailer would perform very well in revenue and income in the third quarter. When it released the quarter results, the retailer also raised its guidance for the Financial Year 2025. CWEB continues with a Buy rating for Walmart stock.
Doug McMillon, Walmart’s President and CEO, said, “We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and transform our business. In the U.S., in-store volumes grew, pick-up from stores grew faster, and delivery from stores grew even faster. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
CWEB had predicted earlier that Walmart would report an increase in in-store and online sales, and CEO McMillon confirmed the prediction as higher numbers were reported.
Walmart’s third-quarter results include revenue of $169.6 billion, an increase of 5.5 percent or 6.2 percent constant currency (cc). It also reported an operating income of up to $0.5 billion. The 8.2 percent increase or 9.8 cc increase is due to an increase in gross margins and membership growth. The giant retailer also said that it has reduced eCommerce losses.
Walmart reported that global eCommerce sales rose by 27 percent while its global advertising business rose by 28 percent, including 26 percent for Walmart Connect, US. The Bentonville, Arkansas-headquartered company also reported adjusted earnings per share of $0.58.
Walmart has raised its FY25 guidance. It expects net sales to grow between 4.8 percent and 5.1 percent and adjusted operating income between 8.5 percent and 9.25 percent in cc.
CWEB predicts that Walmart’s holiday quarter results could still be better than those of the preceding few years. As it is often referred to, the holiday quarter generally remains the best quarter for almost all retail businesses.
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What to expect when Walmart announces earnings next week? CWEB reiterates Buy
