Walmart Inc (NYSE: WMT) reported its fiscal 2024 first-quarter results that blew away analysts’ estimates. The retail chain also upwardly revised its FY 2024 earnings outlook but issued a slightly lower-than-expected second-quarter earnings outlook. The stock of Walmart ended Friday’s trading session at $151.62, almost flat from the prior close.
Bentonville, Arkansas-based Walmart reported first-quarter revenues of $152.30 billion, up 7.60% from $141.57 billion in the comparable quarter of fiscal 2023. In particular, net sales in the latest quarter were $151.004 billion, reflecting a growth of 7.60% from the previous year. Membership income was $1.297 billion, representing an increase of 1.2% from the prior-year quarter.
For the first quarter, which ended April 30, 2023, the company posted a net income of $1.67 billion, or $0.62 per share, down from $2.05 billion, or $0.74 per share, in the quarter that ended April 30, 2022.
Excluding unrealized and realized (gains) and losses on equity and other investments, Walmart recorded Q1 2023 non-GAAP earnings of $1.47 per share, an increase from $1.30 per share in Q1 2022. Analysts surveyed by Refinitiv had anticipated the company to report earnings of $1.32 per share on revenues of $148.76 billion.
Commenting on the results, Doug McMillon, President and CEO, of Walmart, stated “We had a strong quarter. We leveraged expenses, expanded operating margin, and grew profit ahead of sales.”
Segment wise:
- Walmart U.S. revenues were $103.90 billion, up 7.20% from last year. Specifically, Walmart U.S. e-Commerce sales increased by 27%, while Walmart Connect advertising rose by roughly 40%.
- Walmart International revenues surged 12% to $26,604 billion. The growth was led by China, Flipkart, and Walmex.
- Sam’s Club revenues were $20.499 billion, an increase of 4.50% from the previous year. Membership income rose by 6.30%.
Walmart US comp sales (excluding fuel) rose by 7.40% on a y-o-y basis. Likewise, Sam’s Club sales grew by 7% from the previous year. Overall, US Comp sales increased by 7.30%.
Looking ahead, the big-box retailer forecasts second-quarter revenues to grow by roughly 4%. The company also projects adjusted earnings to be in the range of $1.63 and $1.68 per share. Wall Street analysts anticipate the company to post earnings of $1.71 per share. Also, analysts expect revenue growth of 3.50% to $158.20 billion in the second quarter.
Furthermore, Walmart now forecasts FY 2024 revenue growth of roughly 3.50%. The company also anticipates adjusted earnings of between $6.10 and $6.20 per share. Earlier, the company had forecast net sales growth in the range of 2.50% to 3%. Likewise, Walmart had issued an adjusted earnings outlook of between $5.90 and $6.05 per share.
Analysts surveyed by FactSet expect the company to post FY 2024 adjusted earnings of $6.79 per share on revenue growth of 3.30% to $632.99 billion.
Walmart also intends to develop its own electric-vehicle fast charging network across its facilities in the US.
The historical price chart indicates that the stock of Walmart has broken above the ascending triangle, as shown in the image below. The base of the ascending triangle is expected to act as support. Additionally, the stochastic indicator is in the bullish zone. Therefore, we anticipate Walmart’s stock to remain in an uptrend in the days ahead.
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