Walmart shares surge to record high after earnings beat and outlook boost

Walmart shares are set to open at a fresh all-time high Thursday following its solid first quarter earnings report.

May 16, 2024 - 18:30

0 12

Walmart shares surge to record high after earnings beat and outlook boost

Updated at 8:13 AM EDT

Walmart (WMT) posted stronger-than-expected first-quarter earnings Thursday and said full-year profit could top its forecasts, as the world's biggest retailer continues to benefit from value-focused shoppers hit by food-price inflation.

Adjusted earnings for the three months ended in April came in at 62 cents a share, up 26.5% from the same period last year and firmly ahead of the Wall Street consensus analyst forecast of 52 cents a share.

Group revenue, Walmart said, rose 6% to $161.5 billion , again topping analysts' estimates of a $159.5 billion tally.

U.S. same-store sales were up 3.8%, ahead of Wall Street's 3.2% forecast, while U.S. online sales also impressed, rising 22% from last year and now comprising a record 20% of all domestic revenues.

Looking into the current financial year, Walmart sees earnings at the higher end of, or slightly above, its prior forecast of $2.23 to $2.37 a share, with net sales rising between 3% and 4%.

"Our team delivered a great quarter. Around the world our goal is simple - we’re focused on saving our customers both money and time," said CEO Doug McMillon.

*Walmart CEO Doug McMillon. The retailer's shares, set to open at a record on May 16, 2024, have added nearly $70 billion in value over the past year.*
Ethan Miller/Getty Images

"It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient," he added. "We’re people-led and tech-powered, and that combination is propelling our business.”

Walmart shares were marked 5.7% higher in premarket trading immediately following the earnings release to indicate an opening bell price of $63.22 each.

Earlier this week, Home Depot (HD) posted a big drop in same-store sales, as well as in big-ticket transactions. The home-improvement retailer cited "softer engagements in larger discretionary projects," linked partly to higher inflation.

The group posted modestly better-than-expected profit of $3.63 per share on revenue of $36.42 billion.