Walmart Q3 Beats Estimates; Raises Guidance


Walmart (WMT) delivered better-than-expected Q3 2022 results characterized by strong sales and profit growth globally. Revenue and earnings topped consensus estimates as the giant retailer gained market share in grocery in the U.S. The company has also raised its full-year guidance. WMT shares fell 2.6% to close at $143.17 on November 16. Walmart operates retail and wholesale businesses. The company offers an array of merchandise and services through stores and its online platform, including mobile apps. (See Top Smart Score Stocks on TipRanks)

Q3 Results

Total revenue in the quarter was up 4.3% year-over-year to $140.5 billion, exceeding consensus estimates of $135.6 billion. However, revenue was negatively impacted by about $9.4 billion related to divestitures. Additionally, Walmart’s Q3 comparable sales grew 9.2%. The company also posted an 8% growth in e-commerce sales driven by strong growth in Flipkart, China, and Mexico. International sales landed at $23.6 billion, a decline of 20.1% year-over-year. Walmart’s Q3 adjusted EPS landed at $1.45, beating consensus estimates of $1.40. Year-to-date, Walmart has repurchased $7.4 billion in shares, representing 35% of the $20-billion authorization announced early in the year.

Guidance

For the full year, Walmart expects adjusted EPS of about $6.40, an improvement from the prior guidance between $6.20 and $6.35. The giant retailer expects comparable sales of above 6%, with capital expenditures of about $13 billion.

Stock Rating

Monday, BMO Capital analyst Kelly Bania reiterated a Buy rating on the stock with a $170 price target, implying 18.7% upside potential to current levels. Consensus among analysts is a Strong Buy based on 18 Buys, and five Holds. The average Walmart price target of $171.35 implies 19.7% upside potential to current levels.
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