Key points:
- Walmart reports earnings before the open Tuesday
- The company topped earnings and revenue expectatios
- Walmart shares are up 3.7% premarket
Walmart (NYSE: WMT) shares are up 3.7% premarket on the back of its latest earnings release, which saw it top earnings and revenue estimates.
The retailer posted earnings of $1.77 per share on revenue of $152.86 billion. Analysts expected earnings of $1.63 per share on revenue of $150.93 billion. Revenue rose 8.4% year-over-year. Comparable sales grew 6.5%.
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Biggest Winners From Early Q2 Earnings Reports
“The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing. We continue to build on our strategy to expand our digital businesses, including the continued strength we see in our international markets.” Doug McMillon President and CEO, Walmart.
In Q3, the company expects net sales growth of about 5%, which is negatively affected by approximately $1.3 billion from currency fluctuations. Adjusted earnings per share for the period are expected to decline from 9% to 11%.
For the full year, Walmart expects net sales growth to be approximately 4.5%, with adjusted earnings per share also expected to decline from 9% to 11%. In addition, based on currency exchange rates, the retail giant expects a headwind of around $2.1 billion in the second half of the year.