Walmart Inc.’s stock (WMT, +0.05%) rose 2% in premarket trade on Thursday following the release of their better-than-expected second-quarter earnings report. The retail giant, based in Bentonville, Arkansas, reported a net income of $7.891 billion, or $2.92 per share, for the quarter. This is a substantial rise from the $5.149 billion, or $1.88 per share, in the same quarter of the previous year.
The adjusted earnings per share came to $1.84, surpassing the FactSet consensus of $1.71. Additionally, the company’s revenue for the quarter increased to $161.632 billion from $152.859 billion last year, which also exceeded the FactSet consensus of $160.224 billion.
Strong Results and Expectations
In a statement, Chief Executive Doug McMillon expressed his satisfaction with the strong performance of Walmart. He said, “Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter.”
Looking ahead, Walmart anticipates a third-quarter adjusted EPS of $1.45 to $1.50 and a sales growth of 4% to 4.5%. The FactSet consensus for EPS is $1.49. Moreover, for fiscal 2024, the company expects adjusted EPS of $6.36 to $6.46 and sales growth of 4% to 4.5%. The FactSet consensus is for EPS of $6.30.
Positive Market Performance
Walmart’s stock has shown steady growth, gaining 12.3% since the beginning of the year. In comparison, the Dow Jones Industrial Average (DJIA, -0.52%) has only gained 5% during the same period.
These impressive second-quarter earnings and optimistic projections demonstrate Walmart Inc.’s strong position in the retail industry.