. Walmart's Adjusted Earnings Exceed Estimates in First Quarter

Walmart’s Adjusted Earnings Exceed Estimates in First Quarter

Walmart’s Adjusted Earnings Exceed Estimates in First Quarter

16 May 2024

Walmart’s adjusted earnings for the first quarter exceeded expectations

In the first quarter, Walmart announced income and revenue figures that surpassed analysts’ predictions, benefiting from robust performance in its e-commerce division.

Robust results from its pickup and delivery service propelled a 22% increase in Walmart’s e-commerce sales in the U.S. for the three months ending on April 30. Additionally, e-commerce sales globally surged by 21%, with Walmart noting increased digital presence across all markets.

Walmart highlighted that its “value-convenience proposition” is striking a chord, especially with U.S. customers. It noted gaining market share even among higher-income households that have been opting for more expensive shopping options lately. Additionally, its membership-based arm, Sam’s Club, reported robust sales growth driven by increased demand for groceries and essential items.

In comparison to the same period last year, net sales in the U.S. increased by 4.6% to $108.7 billion. Total revenue also surged by 6% to $161.51 billion, surpassing expectations of $159.58 billion.

Exceeding Bloomberg consensus estimates of $0.53, adjusted earnings per share stood at $0.60, partially due to a $1.6 billion decrease in inventories to $55.4 billion. Elevated inventories had posed a risk of increasing Walmart’s costs and impacting margins.

The company stated that it anticipates consolidated net sales and adjusted operating income for its 2025 fiscal year to align with or slightly exceed its initial guidance, aiming for the upper end. Previously, consolidated net sales were forecasted to grow by 3.0% to 4.0%, while operating profit was expected to rise by 4.0% to 6.0%.

Walmart’s shares experienced an increase in premarket U.S. trading on Thursday.