Walmart Inc. (NYSE: WMT) reported its financial results for the fiscal first quarter on Tuesday that topped analysts’ estimates for earnings and revenue.
1. Financial results
Walmart reported $2.73 billion (£1.92 billion) of net income in the first quarter that translates to 97 cents per share. In the same quarter last year, its net income stood at a higher $3.99 billion ($1.44 per share). In the prior quarter (Q4), Walmart had registered $2.09 billion of net loss.
On an adjusted basis, the American multinational earned $1.69 per share versus the year-ago figure of $1.69 per share. Walmart generated $138.31 billion of revenue, compared to $134.62 billion last year.
According to FactSet, experts had forecast the company to post $132.16 billion of revenue in Q1 and $1.21 of adjusted EPS. In separate news from the U.S., Macy’s CEO said on Tuesday a sharp increase in sales seen in Q1 wouldn’t be short-lived.
2. Other notable figures
Comparable sales in the United States jumped 6% in the recent quarter, and digital sales climbed by 37%. International sales, on the other hand, tanked 8.3% despite a 49% growth in eCommerce sales.
Walmart’s total member count in the first quarter soared to a record high resulting in a 12.7% increase in membership income. Comparable sales attributed to Sam’s Club came in 7.2% better than the previous year.
3. Guidance for the full financial year
For the full financial year, Walmart now forecasts a little under 10% growth in its EPS. Excluding fuel, it expects a less than 5% increase in its U.S. comparable sales this year. In comparison, experts are calling for a 1.2% decline in per-share earnings and a 2% growth in U.S. comparable sales.
4. CFO Brett Biggs’ remarks
Commenting on the quarterly earnings report, CFO Brett Biggs said:
“You’re seeing customers definitely get out and spend again. Spending rates are good. Income rates are good. The savings rates are actually still almost at an all-time high, which would lead you to believe there is going to be some pent-up demand as we get to the back half of the year.”
Impact on the share price
Walmart shares were reported about 3.5% up in premarket trading on Tuesday. The stock is now exchanging hands at $142.30 per share. In comparison, it had started the year at a per-share price of a higher $146.50. At the time of writing, Walmart is valued at $400 billion and has a price to earnings ratio of 29.97.
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Wajeeh Khan
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