- Walmart‘s 1Q adjusted EPS was 60c, surpassing the estimated 53c.
- Total US comparable sales excluding gasoline rose by 3.9%, outdoing the estimated 3.42%.
- Comparable sales at Walmart-only US stores excluding gasoline increased by 3.8%, besting the projected 3.45%.
- Sam’s Club, a subsidiary of Walmart, saw US comparable sales excluding gasoline surge by 4.4%, outdoing the estimated 3.33%.
- Walmart’s revenue stood at $161.51 billion, a year-on-year increase of 6%, outpacing the expected $159.58 billion.
- The ticket size at US-based only Walmart stores remained unchanged, differing from the estimated increase of 1.32%.
- The number of transactions at Walmart-only US stores rose by 3.8%, surpassing the forecasted 3.17%.
- For the second quarter, the company has projected an adjusted EPS of 62c to 65c, which is in line with the estimate of 64c.
- Walmart forecasts its FY adjusted EPS to be at the high-end or slightly above the range of $2.23 to $2.37, maintaining its previous estimate.
- The retailer expects the FY change in net sales to also be towards the high-end or slightly above the range of 3% to 4%.
- It maintains the FY capital expenditure estimate to be about 3% to 3.5% of net sales.
- The 1Q adjusted EPS doesn’t factor in the net tax effect from a net gain of $0.05 on equity and other investments, and business reorganization charges of $0.02.
- The company highlighted that e-commerce penetration is higher across all markets globally, predominantly driven by store-fulfilled pickup & delivery and marketplace.
Walmart on Smartkarma
Analyst coverage of Walmart on Smartkarma has been positive, with insights from Baptista Research highlighting key drivers of Walmart‘s success. In a report titled “Walmart Inc.: Robust Technology Adoption For Operational Efficiency & 5 Other Major Drivers,” Walmart‘s recent earnings performance was lauded for demonstrating strong sales growth of 4.9% and an adjusted operating profit growth of 10.9% in constant currency. The report emphasized higher transaction counts, gains in market shares, improved in-stock levels, and surpassing $100 billion in global eCommerce sales for the first time.
Another analysis by Baptista Research, titled “Walmart Inc.: Inside the Game Plan That’s Maximizing Omnichannel Growth In Retail! Major Drivers,” highlighted Walmart‘s ability to exceed analyst expectations in both revenue and earnings. Key successes included a 4.9% increase in comp sales for Walmart US and a notable 3.8% rise for Sam’s Club US. The report also praised Sam’s Club’s performance in Mexico and China, specifically mentioning the exceptional growth of the Bodega Aurrera business. Overall, analyst sentiment on Walmart remains bullish based on the factors mentioned in these research reports.
A look at Walmart Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Based on the Smartkarma Smart Scores, Walmart‘s long-term outlook seems promising. With a Growth score of 3 and a Resilience score of 3, the company appears to have a stable foundation for future expansion and the ability to withstand market challenges. Additionally, Walmart received a Momentum score of 4, indicating strong positive momentum in its operations.
Although Walmart‘s Value and Dividend scores are both at 2, suggesting room for improvement in these areas, the overall picture painted by the Smart Scores is one of a company with solid growth potential, resilience, and current momentum for investors to consider.
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### Walmart Inc. operates discount stores, supercenters, and neighborhood markets. The Company offers merchandise such as apparel, housewares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toys, household essentials, pets, pharmaceutical products, party supplies, and automotive tools. Walmart serves customers worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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