US Markets
Thursday, November 16th, 2023 3:00 pm EDT
Key Points
- Walmart Exceeds Q3 Earnings Estimates: Walmart reported fiscal third-quarter earnings that exceeded Wall Street expectations, with sales on the rise. However, the company expressed a cautious outlook after observing weakened consumer spending toward the end of the period.
- Holiday Shopping Season Forecast: Walmart’s shares, which had reached an all-time high, experienced a slide in premarket trading following a slightly lower-than-expected forecast for the year. The company anticipates adjusted earnings per share for the year to be between $6.40 and $6.48, below analyst expectations but higher than its previous range. Walmart expects consolidated net sales to increase by 5% to 5.5%.
- Inflation Trends, Consumer Behavior, and Revenue Streams: Walmart noted that inflation has waned, and in some categories, deflation has set in. While this may benefit Walmart’s shoppers, it could impact the company’s sales. The CEO mentioned a shift in general merchandise prices falling, setting the stage for a potential turnabout. Despite some cautionary trends in consumer behavior in October, Walmart observed an uptick in sales, particularly for items like clothing, as holiday promotions gained momentum. The company has diversified its revenue streams, with digital sales, its grocery business, and newer initiatives like selling ads and Walmart+ memberships contributing to its overall revenue growth.
Walmart reported fiscal third-quarter earnings that surpassed Wall Street expectations, with sales rising. However, the retail giant expressed caution about its outlook, citing weakened consumer spending at the end of the quarter. Walmart’s shares, which had reached an all-time high the day before, fell in premarket trading. The company provided a slightly lower-than-expected forecast for the year as it heads into the crucial holiday shopping season. Walmart anticipates adjusted earnings per share for the year to be between $6.40 and $6.48, lower than analysts’ expectations but higher than its previous range. Despite inflation trends and deflation in certain categories, Walmart’s sales have risen, partially due to higher prices during a period of inflation. The company sees a potential period of deflation ahead but welcomes it as being better for customers. Walmart’s digital sales increased, and it is making money through avenues like ad sales and memberships to Walmart+. While Walmart experienced some cautionary trends in consumer behavior in October, it observed an uptick in sales, especially for clothing, as the holiday promotions gained momentum. The retailer’s shares had reached an all-time high the day before the report, closing at nearly $170, up about 19% for the year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/16/walmart-wmt-earnings-q3-2024-.html
