Walmart stock jumps after sales and profit, excluding the opioid-related charges, beat expectations by a wide margin

Shares of Walmart Inc. shot up 6.6% toward a six-month high in premarket trading Tuesday, after the discount retail behemoth swung to a net third-quarter loss, due to $3.3 billion in charges related to opioid legal settlements, but adjusted profit, revenue, and same-store sales that were well above expectations and a full-year outlook that was above forecasts. The net loss for the quarter to Oct. 31 was $1.80 billion, or 66 cents a share, after a net income of $3.11 billion, or $1.11 a share, in the year-ago period. Excluding nonrecurring items, such as the opioid charge, adjusted earnings per share of $1.50 beat the FactSet consensus of $1.32. Revenue grew 8.7% to $152.81 billion, above the FactSet consensus of $147.67 billion. Walmart U.S. same-store sales rose 8.2%, above the FactSet consensus of a 3.6% rise, and Sam’s Club same-store sales increased 10.0% to beat expectations of 8.7%. Cost of sales increased more than revenue, up 10.1% to $115.61 billion, as gross margin contracted to 24.3% from 25.3%. For fiscal 2023, the company increased its outlook for adjusted EPS to a year-over-year decline of 6% to 7% from a decline of 8% to 10% and for sales growth to 5.5% from 4.5%.

WALMART TECHNICAL ANALYSIS

Daily Chart:

In the daily chart, WALMART is currently trading in the up channel.

It is currently trading above all MA; RSI is in buying zone.

Its immediate resistance is at 150.08 and its support level is at 143.04

HOW TO TRADE IN THIS WEEK

Currently, the market is trading in an up channel. A strong bullish candle with bullish engulfing is made which has broken previous week’s high, market is indicating upside movement remains bullish on it.

TRADE SUGGESTION: BUY AT 148.07, TARGET AT 154.00, SL AT 144.5,