What's Going On With Retail Giant Walmart Shares Today?

Walmart Inc WMT reported third-quarter FY24 sales growth of 5.2% year-over-year to $160.8 billion, beating the consensus of $159.55 billion.

Net sales from Walmart U.S. increased 4.4% Y/Y, Walmart International rose 10.8%, and Sam's Club U.S. was up 2.8%.

Walmart's total U.S. comp sales (ex-fuel) up 4.7%. Specifically, Walmart U.S. comp sales (ex-fuel) was up 4.9% and eCommerce up 24%, led by pickup & delivery.

Operating income rose 130.1% Y/Y to $6.20 billion, and the margin expanded by 209 bps to 3.9%. 

Adjusted operating income up 3% Y/Y, positively affected by the impact of currency and LIFO, and margin contracted by 18 bps to 3.7%

Adjusted EPS was $1.53, above $1.50 last year same quarter, beating the consensus of $1.52.

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The consolidated gross margin rate was up 32 bps, positively affected by a slight improvement for Walmart U.S. and the timing of Flipkart's The Big Billion Days.

Operating cash flow for nine months totaled $19 billion, with a free cash flow of $4.34 billion. The company held $12.2 billion in cash and equivalents as of October 31, 2023.

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Year-to-date, Walmart repurchased 8.7 million shares worth $1.3 billion with a remaining share repurchase authorization of $18.1 billion.

FY24 Outlook, raised: Walmart now sees adjusted EPS guidance of $6.40-$6.48 (prior 6.36-$6.46) versus an estimate of $6.48. 

WMT raised its FY24 net sales growth (cc) outlook to 5.0% to 5.5% from 4% - 4.5% earlier.

WMT's guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally.

In addition, Walmart's CEO said in the conference call that the company will lower prices for the holiday season on general merchandise items where it is seeing deflation in prices.

Price Action: WMT shares are trading lower by 7.7% at $156.56 on Thursday.

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