The main figures for the quarter ended at the end of April:
- Walmart ended the quarter with $152.3 billion in revenue, which is a 7.6 percent increase compared to the same period last year. This exceeded analysts’ expectationsthe consensus was 148.8 billion dollars.
- An indicator closely watched by investors, income calculated on a comparable basis (which takes into account stores that have been open for at least a year) in the United States increased by 7.4 percent excluding fuel sales. E-commerce sales jumped 27 percent.
- Despite the strong sales numbers, Walmart said that sales are slowing downpeople buy smaller packages and fewer discretionary items, and wait for sales to buy more expensive products such as televisions.
- The gross coverage level decreased slightly, by 18 basis points, to 23.7 percent, the change in sales mix as a result.
- The operating result reached 6.2 billion dollars, which is a 17.3 percent increase on a year-on-year basis.
- The company recorded a profit of 1.7 billion dollars in terms of net profit, which is an 18.5 percent drop from the level of a year ago.
- Adjusted earnings per share were $1.47 in the quarter, which was also a nice surprise., exceeded the market consensus by 15 cents. This is compared to the base period 13.1 percent increase.
- The cash balance stood at $10.6 billion at the end of the quarter, and the loan balance stood at $49.5 billion. Operating cash flow was $4.6 billion and free cash flow was $0.2 billion, both representing a significant improvement over last year’s level. Walmart repurchased 4.8 million shares through its shareholder cash-back program.
The management has raised its profit expectation for the entire year, and currently expects earnings per share of $6.1-$6.2, compared to the previous forecast of $5.9-$6.05.
However, for the current quarter, the management gave a weaker expectation than the analyst consensus, the management expects EPS between 1.68 and 1.71 dollars, compared to Wall Street’s expectation of 1.71 dollars.
Walmart further expectations for this year:
- Net sales may increase by 3.5 percent, excluding the effects of exchange rate changes.
- The operating result can show dynamics between 4.0-4.5%.
- The effective tax rate may be 26.5%, and capital investments may stagnate or increase minimally compared to previous expectations.
Walmart’s quick report was well received by investors, The exchange rate is 1.5 percent higher in pre-opening trading.
Cover image: Getty Images