Categories Earnings, Retail

Walmart (WMT) stock rises on Q3 earnings beat, FY20 outlook; revenue up 2.5%

Retail behemoth Walmart (NYSE: WMT) reported third-quarter earnings that exceeded estimates and raised its full-year 2020 guidance, to reflect the steady momentum in the domestic market and e-commerce initiatives. Aided by a positive comparable store performance, revenues grew 2.5%. The stock rose sharply early Thursday, following the announcement.

Walmart (WMT) stock rises on Q3 earnings beat, FY20 outlook

Third-quarter adjusted earnings were $1.16 per share, up from $1.08 per share recorded last year and above the consensus forecast. Net profit, on an unadjusted basis, moved up to $3.29 billion or $1.15 per share from $1.71 billion or $0.58 per share in the year-ago period.

Comps Up 3.2%

There was a 3.2% increase in Walmart US comparable sales and a 41% jump in Walmart U.S. eCommerce sales. Comparable sales at Sam’s Club edged up 0.6% and eCommerce sales climbed 32%. The outcome was negatively impacted by reduced tobacco sales.

Related: Retail space gets busy as firms see opportunity in healthcare

Consequently, total revenues advanced 2.5% annually to $128 billion, broadly matching Wall Street’s prediction.

“Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers. Our associates are working hard to ensure we succeed — one customer, one interaction at a time,” said CEO Doug McMillon.


For fiscal 2020, the management expects adjusted earnings per share to increase slightly, compared to last year, including Flipkart. Excluding Flipkart, full-year earnings are seen growing by a high single-digit percentage range. The outlook has been revised up from the estimate provided earlier. Currently, the effective tax rate is expected to range between 25% and 25.5%.

New Head for US

Walmart U.S. ended the third quarter with more than 3,000 grocery pickup locations and around 1,400 same-day grocery delivery locations. During the period, the company appointed John Furner as president and CEO of Walmart U.S.

Last month, arch-rival Amazon (AMZN) lost significant market value after the e-tail giant’s third-quarter earnings fell short of expectations as the bottom-line was dragged down by an increase in operating expenses. At $70 billion, revenues were up 24%.

Aso see: Wal-Mart Q4 2019 Earnings Conference Call Transcript

Walmart shares have set new records consistently in recent months. Though the stock reversed the trend briefly a few months ago, it bounced back and returned to growth mode after the second-quarter report. The stock is up 26% since the beginning of the year.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

PEP Earnings: All you need to know about PepsiCo Q1 2021 earnings results

PepsiCo Inc. (NASDAQ: PEP) reported first-quarter 2021 earnings results today. Net revenues increased 6.8% year-over-year to $14.82 billion while organic revenue growth was 2.4%. Net income attributable to PepsiCo was $1.7 billion,

The worst seems to be over for Boston Scientific. Is the stock a buy?

The pandemic has had a mixed impact on the healthcare sector since its outbreak more than a year ago, putting the emergency care department into overdrive while slowing down the

Two areas that provide Pfizer (PFE) with ample opportunity for future growth

Shares of Pfizer Inc. (NYSE: PFE) have gained over 8% in the past one year. Pfizer is at the forefront of the COVID-19 vaccination drive and it has established a

Add Comment
Viewing Highlight