Walmart (WMT) Profit for Q3 2022

A shopper carries a shopping bag outside a Walmart store in San Leandro, California, Thursday, May 13, 2021.

David Paul Morris | Bloomberg | Getty Images

Walmart’s fiscal third quarter profit on Tuesday beat analysts’ expectations as price-sensitive grocery shoppers flocked to its stores amid rising FMCG prices.

The retailer’s size helps it cope with confusing supply chains as it negotiates with manufacturers, increases its inventory and charters its own ships to transport goods around the world. Walmart raised its outlook for the year, saying adjusted earnings per share would be around $ 6.40, up from its previous expectations of $ 6.20 to $ 6.35.

The premarket shares were up about 2%.

Here is what the company reported for its third fiscal quarter ended October 31, according to the Refinitiv consensus estimate:

  • Earnings per share: Adjusted $ 1.45 versus $ 1.40 expected.
  • Revenue: $ 140.53 billion vs. $ 135.60 billion forecasts

Walmart’s net income fell to $ 3.11 billion, or $ 1.11 a share, from $ 5.14 billion, or $ 1.80 a share, a year earlier. Excluding items, the company’s earnings were $ 1.45 per share. Analysts had expected Walmart to earn $ 1.40 a share, according to Refinitiv.

Total revenue rose about 4% to $ 140.53 billion from $ 134.7 billion a year earlier, beating Wall Street’s expectations of $ 135.60 billion.

Walmart sales at the same stores in the US were up 9.2% excluding fuel, up 6.9% from StreetAccount’s expectations.

Walmart’s U.S. e-commerce sales were up 8% year-over-year, or 87% in two years.

Known for its emphasis on everyday low prices, Walmart is one of the retailers that better endure a period of price hikes. When consumers experience sticker shock, they can buy more groceries, clothing, and other items from stores and retailer websites, rather than contacting competitors.

“We’ve always fought inflation for customers,” Walmart CFO Brett Biggs told CNBC. “Our scale and variety of products allows us to do things in a way that is beneficial to customers and beneficial to shareholders.”

Biggs said food inflation has been in the low to medium single digits over a three-month period.

Walmart CEO Doug McMillon said in a press release that the company is increasing its grocery market share as American consumers return to stores.

At warehouse club Sam’s Club, which is based on Walmart membership, single-store sales rose 13.9%, excluding fuel, compared to the 8.7% growth expected by StreetAccount.

Biggs said the retailer sees shoppers buying holiday merchandise early. He said enough candy has already been sold to stretch from his headquarters in Bentonville, Arkansas, to the North Pole.

However, he said there was “no significant push from holiday shopping in the third quarter.”

As of the end of Monday, Walmart shares are up about 2% this year. Shares closed less than 1% lower on Monday at $ 146.91, bringing Walmart’s market value to $ 409.66 billion. Its shares lag behind the S&P 500, which is up about 30% this year.

Read Walmart press release here.

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