Zinger Key Points
- Walmart reported Q3 FY25 sales of $169.6B, beating estimates, with adjusted EPS of $0.58 and global eCommerce sales up 27%.
- Raised FY25 guidance: adjusted EPS to $2.42-$2.47 and sales growth to 4.8%-5.1%, citing strong U.S. performance.
Walmart Inc WMT shares are trading higher on Tuesday after the company announced third-quarter results and raised its fiscal-2025 guidance.
The retailer reported adjusted EPS of 58 cents, beating the consensus of 53 cents.
Sales were $169.59 billion, up 5.5% year over year or 6.2% (at constant currency), beating the consensus of $167.72 billion.
The gross margin rate was up 21 bps, aided by improvement in the Walmart U.S.
Operating income was up $0.5 billion, or 8.2%, and up 9.8% year over year (at constant currency) on higher gross margins, growth in membership income, and reduced eCommerce losses.
Global eCommerce sales rose 27%, driven by store-fulfilled pickup and delivery as well as marketplace growth. Global advertising business grew 28%, including 26% for Walmart Connect in the U.S.
Walmart U.S same-store sales climbed by 5.3% year over year, excluding fuel, aided by strong broad-based growth in merchandise categories and physical and digital channels.
Read: Will Walmart’s Streak Of Earnings Beats Continue Tuesday? Analysts Say Retailer A ‘Core Holding’
At Sam’s Club, same-store sales rose 7.0% year over year, excluding fuel, led by food and health and wellness categories, along with increased transactions and unit volumes.
Doug McMillon, President and CEO, said, “In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
Walmart generated an operating cash flow of $22.9 billion and free cash flow of $6.2 billion in nine months ended October 31, 2024. It ended the quarter with cash and equivalents of $10.0 billion.
Guidance: For FY25, the big box retailer raised its adjusted EPS outlook to $2.42 – $2.47 (from $2.35 – $2.43), vs. the consensus of $2.45.
Walmart boosted FY25 net sales (at constant currency) growth guidance to 4.8% – 5.1% from 3.75% – 4.75% earlier.
Investors can gain exposure to the stock via Vanguard Consumer Staples ETF VDC and Fidelity MSCI COnsumer Staples Index ETF FSTA.
Price Action: WMT shares are up 3.59% at $87.10 premarket at the last check Tuesday.
Image by Sundry Photography on Shutterstock
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