Walmart raises annual earnings estimate on higher quarterly revenue
Global retail group lifts forecast after strong sales boost revenue and earnings in third quarter
Global retail giant Walmart raised its earnings estimate for the year on Thursday, after posting a strong quarter with sales growth across all its business lines and most regions.
Total revenue jumped 2.4% in the third quarter to $124.9bn, while the key metric of comparable store sales rose 3.4%, the company said.
“Each of our segments achieved solid sales growth,” Walmart CEO Doug McMillon said.
The solid sales growth pushed the closely watched earnings-per-share measure to $1.08 in the latest quarter, beating expectations.
The company raised its estimate of financial year 2019 earnings per share by 10c to $4.75-$4.85, just a few weeks after lowering the estimate following the acquisition of India’s online retailer Flipkart.
Company executives said the investment is key to positioning the chain to compete in the changing and competitive retail and e–commerce sector.
Comparable sales at existing Walmart stores rose 3.4% in the three months ended October 26, while the chain saw sales growth “in nine of our 10 markets, including our four largest markets: Mexico, China, Canada and UK”, according to the statement.
Walmex in Mexico led the way with an increase of 5.4% in the quarter, while sales in China rose 2.2%.
“Overall, we’re encouraged by the momentum in our business and excited to be in a strong position to invest for the future as prior investments pay back,” McMillon said.
Company executives were due to hold a conference call later on Thursday to discuss the results, but investors seem to be cheering the news, with Walmart shares up 1.72% in premarket trading.