Walmart Increases EPS Forecast After Beating Analyst Expectations

Even in the face of growing pressure from the online marketplace, Walmart remains the largest retailer in the world.  And if their most recent numbers indicate anything, it looks like this is not going to change any time soon.

For Q3, the most populous big-box store in the world reported adjusted per-share earnings of $1.08, which beat the $1.01 per share that analysts had originally forecast. This means, their earnings are stronger than expected, and much of it is actually due to strong gains in their e-commerce business.

In addition, Wal-Mart comparable store sales—excluding fuel—grew 3.4 percent in the third quarter.  This was also stronger than the 2.9 percent analysts had expected.

On the other hand, however, net revenue for quarter three registered just shy of $125 billion, which missed analysts estimates by almost half a billion. And on that note, the retailer increased its full-year fiscal guidance for 2019 to an Adjusted Earnings Per Share range of $4.75 to $4.85.

WalMart CEO Doug McMillan said, in a statement, that the company continues to see strong comparable store sales, with results reflected in many facets.  Of course, with their e-commerce arm up by 43 percent in Q3 (in the US sector, at least), things are definitely looking good.

McMillan goes on to say that their primary focus, right now, is simply on the fundamentals of the business.  On top of this, he forecasts, they plan to move forward more aggressively with innovation.  With their “Customer Value Index” score hitting notes ahead of their strategies, they are now looking to expand in same-day delivery options—via multiple distribution channels, including Jet.com—as well as adding more “digitally native brands” to their currently vast portfolio.

If you sense a little excitement in McMillan’s words you might it might have something to do with the fact that Walmart shares were down 1.5 percent in afternoon trading on the day of the announcement. This is sure to turn around and continue the stock’s momentum, which is actually up 13 percent from the same period one year ago.

Walmart’s present market cap is $249.5 billion.

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