U.S. Markets closed

Walmart earnings beat expectations, stock spikes to new highs

Julia La Roche
Correspondent

Retail giant Walmart (WMT) reported stronger-than-expected third-quarter earnings on Thursday, driven by strength in its e-commerce business. Shares are soaring to new highs.

Here were the main numbers compared to Bloomberg consensus forecasts:

  • Revenue: $127.99 billion vs. expectations of $128.67 billion

  • Adjusted EPS: $1.16 vs. expectations of $1.09

  • Walmart U.S. comp-store sales (excluding gas): 3.2% vs. expectations of 3.1%

  • Walmart U.S. e-commerce sales: up 41%

The closely followed comp sales number came in at 3.2%, versus expectations of 3.1%, driven by both customers visiting more and spending more during those visits. During the quarter, comp transactions increased 1.3% and the ticket was up 1.9%.

“We continue to see good traffic in our stores. We’re growing market share in key food and consumables categories, including fresh, and we had positive comps in general merchandise,” CEO Doug McMillon said in the management commentary.

During the third quarter, online sales in the U.S. skyrocketed 41%, driven by the big-box retailer’s online grocery business. In the U.S., Walmart now has more than 3,000 locations for grocery pick-up and more than 1,400 locations for delivery. The retailer expects to offer free same-day grocery pickup from more than 3,100 stores by the end of the year and feature same-day grocery delivery at more than 1,600 stores.

Walmart also expanded its unlimited delivery grocery membership offering “Delivery Unlimited” to 1,400 locations, and debuted InHome Delivery in three U.S. cities covering a customer base of more than 1 million.

In the management commentary, McMillon noted that the e-commerce team improved gross margins compared to a year ago “through improvements in merchandising mix” and “leveraging operating expenses.”

“We’re making progress on many fronts, but we need to do more and move faster, especially with our assortment including marketplace. I continue to challenge the team to drive a deeper, more sustainable relationship with the customer, better execute the fundamentals, and improve the overall economics of the business. Our strength is being driven by food, which is good, but we need even more progress on Walmart.com with general merchandise,” McMillon said, reiterating that Walmart is “committed to progress and building a larger, healthier eCommerce business.”

The entrance to a Walmart in Pittsburgh. Walmart reports its third quarter earnings on Thursday, Nov. 14. (AP Photo/Gene J. Puskar, File)

He added that the online grocery pick-up and delivery along with the new Unlimted Delivery and InHome Delivery offerings could help the e-commerce business “serve customers in a way that reduces friction and enhances convenience.”

“We need to translate this repetitive food and consumable volume into a stronger Walmart.com business that’s profitable over time, so that’s what we’re working on,” he added.

Walmart also raised its guidance adjusted earnings per share guidance for fiscal 2020, noting that adjusted EPS is “now expected to increase slightly” compared to a year ago.

"We're pleased with our performance for the quarter,"McMillon said in the earnings release. “Our associates are responding to change in an inspiring way, and we're proud of them.”

Shares of Walmart gained 1.56% on Wednesday to end the day at $120.98. In pre-market trading, the stock jumped more than 3% to trade at new all-time highs.


Julia La Roche is a Correspondent at Yahoo Finance. Follow her on 
Twitter.


  • The Dow just logged its worst 2-day point slide in history — here are 5 reasons the stock market is tanking, and only one of them is the coronavirus
    Business
    MarketWatch

    The Dow just logged its worst 2-day point slide in history — here are 5 reasons the stock market is tanking, and only one of them is the coronavirus

    The U.S. stock-market rally is unraveling, with a period of historic gains coming to a screeching halt, as fear that the coronavirus epidemic may reach America rattles Wall Street. The Dow Jones Industrial Average (DJIA)was off 929.92 points, or 3.3%, at its Tuesday nadir, at 27,030.88, a day after the blue-chip benchmark suffered a drop of more than 1,000 points, representing the third worst one-day point drop in the index's 124-year history. The Dow finished Tuesday down nearly 880 points to mark its sharpest-ever two-session slide in point terms, losing about 1,910 points, according to Dow Jones Market Data.

  • El-Erian says ‘continue to resist’ buying the stock-market dip after virus-inspired plunge
    Business
    MarketWatch

    El-Erian says ‘continue to resist’ buying the stock-market dip after virus-inspired plunge

    Economist Mohamed El-Erian on Tuesday reiterated his call to resist automatically buying the dip after coronavirus-inspired stock-market selloffs. That was the widely followed investor and chief economic adviser to Allianz in an interview with CNBC ahead of Tuesday's opening bell. Stocks opened moderately higher, but then turned south, a day after the Dow Jones Industrial (DJIA) tumbled more than 1,000 points, with the blue-chip gauge and the S&P 500 (SPX) both falling more than 3% for the biggest one-day drop since February 2018.

  • Billionaire George Soros Snaps Up These 3 “Strong Buy” Stocks
    Business
    TipRanks

    Billionaire George Soros Snaps Up These 3 “Strong Buy” Stocks

    George Soros may be a lightning rod for political controversy, but everyone can agree that he's a market and financial genius. In recent years, Soros has made public predictions on the move to regulate internet giants Facebook and Google as public utilities, on the 'bubble' nature of cryptocurrency, and on the Democrats' off-year victory in the 2018 elections. Soros has a positive genius for finding them, and reaping their gains.

  • I’m 59, and my husband and I earn $500,000 a year — but have credit card debt and nothing saved for retirement. What should we do?
    Business
    MarketWatch

    I’m 59, and my husband and I earn $500,000 a year — but have credit card debt and nothing saved for retirement. What should we do?

    What's the difference between a 401(k) and a Roth 401(k)? A deep look into the different retirement accounts available - 401(k), Roth 401(k), IRA, Roth IRA - and how to tell what's best for you. It's also important that you use this time to make a budget and see where you can make larger cuts in your spending to free up as much cash as you can, Bruggeman adds.

  • Stocks sink as CDC warns of likely coronavirus outbreak in United States
    Business
    Yahoo Finance Video

    Stocks sink as CDC warns of likely coronavirus outbreak in United States

    Martin Currie Head of Investment Strategy Kim Catechis joins Yahoo Finance's Seana Smith to discuss the market reaction as stocks plunge for a second day in a row amid renewed coronavirus concerns on The Ticker.

  • Suze Orman says investors should ‘rejoice’ at the Dow’s more-than-1,000-point tumble on Monday — here’s why
    Business
    MarketWatch

    Suze Orman says investors should ‘rejoice’ at the Dow’s more-than-1,000-point tumble on Monday — here’s why

    Author and personal-finance expert Suze Orman had a simple two-word answer to the question of how to react to a market that just shed more than 1,000 points on the back of growing uncertainties, including the spread of the coronavirus outbreak. Orman said Monday on CNBC that investors should stay the course and explained why she thought investors worried about their retirement savings after a historic downturn for the Dow Jones Industrial Average should welcome such selloffs.

  • Scaramucci sounds off on why markets are so volatile, hitting Fed, Volcker Rule
    Politics
    Yahoo Finance

    Scaramucci sounds off on why markets are so volatile, hitting Fed, Volcker Rule

    As markets reel from coronavirus fears, investor and ex-White House advisor Anthony Scaramucci said on Tuesday that he's never been more defensive on equities. Speaking to Yahoo Finance's “On The Move,” the founder of SkyBridge Capital and 31-year Wall Street veteran gave a laundry list of concerns — from the repo market's seizing up last fall, to the big banks having less liquidity — as to why the trading environment is so volatile. Scaramucci famously served less than 2 weeks as President Donald Trump's Communications Director, before becoming his former boss' most outspoken critic.

  • Buffett is bullish on stocks but says the market can drop 50% — is he wrong?
    Business
    MarketWatch

    Buffett is bullish on stocks but says the market can drop 50% — is he wrong?

    Stock market investors are watching the coronavirus spreading far beyond China. It is no longer mostly in Asia. Italy has reported six coronavirus deaths and an accelerating number of cases.

  • Why the market suddenly got so worried about coronavirus: Morning Brief
    Business
    Yahoo Finance

    Why the market suddenly got so worried about coronavirus: Morning Brief

    Subscribe The story is now much bigger than China The stock market on Monday got slammed. All three major indexes fell more than 3%. The Dow dropped more than 1,000 points for just the third time in its history.

  • Disney CEO Bob Iger steps down in surprise announcement
    Business
    Associated Press

    Disney CEO Bob Iger steps down in surprise announcement

    Disney CEO Bob Iger, who steered the company's absorption of Star Wars, Pixar, Marvel and Fox's entertainment businesses and the launch of a Netflix challenger, is stepping down immediately, the company said in a surprise announcement Tuesday. The Walt Disney Co. named as his replacement Bob Chapek, most recently chairman of Disney's parks, experiences and products business. "Did not see this coming -- Wowza," tweeted LightShed media analyst Rich Greenfield.

  • CDC Issues Warnings on Virus; Markets Take Hit: Virus Update
    Business
    Bloomberg

    CDC Issues Warnings on Virus; Markets Take Hit: Virus Update

    The U.S. Centers for Disease Control and Prevention warned Americans to prepare for a coronavirus outbreak at home that could lead to significant disruptions of daily life, though the warnings were downplayed by the White House. Congress was told that there's shortage of masks needed for health workers if one occurs. New cases were reported in Europe, prompting worries of a widening outbreak there.

  • What to expect from Beyond Meat earnings
    Business
    Yahoo Finance Video

    What to expect from Beyond Meat earnings

    Beyond Meat is set to report quarterly earnings after the bell on Thursday. Yahoo Finance's Heidi Chung breaks down what to expect. Dan Roberts and Payne Capital Management President Ryan Payne join in on the conversation.

  • The coronavirus is a serious concern but the stock market’s selloff is not
    Business
    MarketWatch

    The coronavirus is a serious concern but the stock market’s selloff is not

    The coronavirus was first identified in January in China, but investors in U.S. stocks paid it little mind. Just last week, both the S&P 500 (SPX) and the Nasdaq Composite (COMP) hit all-time highs, a feat the Dow Jones Industrial Average (DJIA) had achieved the week before. But after reports that highly contagious COVID-19, the disease caused by a new strain of coronavirus, had spread beyond China to Japan and South Korea, stocks began to slip.

  • P&G alum’s firm launches coronavirus face mask
    Business
    American City Business Journals

    P&G alum’s firm launches coronavirus face mask

    Cincinnati native James Michael Lafferty, a former Procter & Gamble Co. executive who is now CEO of Fine Hygienic Holding, said his company has just begun selling a reusable face mask designed to guard against the deadly new strain of coronavirus. Procter & Gamble was among the first companies to buy the Fine Guard brand of masks to equip its employees in China, where the coronavirus originated, Lafferty said. P&G, the Cincinnati-based maker of consumer goods such as Pampers diapers and Bounty paper towels (NYSE: PG), has more than 8,000 employees in Greater China.

  • Here are the worst possible scenarios for Corporate America amid the coronavirus
    Business
    Yahoo Finance

    Here are the worst possible scenarios for Corporate America amid the coronavirus

    How bad can financials of companies get? Well, the strategy team at investment bank Jefferies attempts to unpack the situation, listing several worse-case scenarios: Companies may be forced to cut prices to clear product, which is deflationary and not favorable to profit margins (and profits). Unsold inventory raises the potential for working capital issues.

  • Business
    Bloomberg

    Ford Shares Hit 10-Year Low, But CEO Hackett Has Chairman’s Ear

    If there were any doubts in the crowd about that statement, Hackett underscored it by discussing the early retirement of Joe Hinrichs, a Ford president whom many had seen as a potential successor to the CEO. The comment was a surprising display of force from a man who had just overseen another disappointing quarter that deepened the sell-off in Ford stock during his almost three-year tenure. The reason for such confidence: Hackett, 64, retains the backing of Executive Chairman Bill Ford.

  • Business
    NerdWallet

    How the IRS Knows If You Cheat on Your Taxes

    Those forms, called information returns, typically are records of certain payments you received or made during the tax year that you usually need to report on your tax return. Some of the most common information returns are W-2s, which report wages earned from a job, and 1099s, which report money received for things such as freelance work, dividends or interest. But other money moves you make could put information returns in the IRS' mailbox, too, says Ignatius Jackson, a certified public accountant in Phoenix.

  • NIO Soars on China Government Deal Bernstein Calls a Bailout
    Business
    Bloomberg

    NIO Soars on China Government Deal Bernstein Calls a Bailout

    But in light of the partnership, the company said it plans to raise more than 10 billion yuan ($1.43 billion). NIO shares soared as much as 34% to $5.19 shortly after the open of regular trading Tuesday in New York. The stock had been slumping since last year, as heavy spending on marketing and splashy showrooms failed to generate demand for its ES8 and ES6 electric sport utility vehicles.

  • Business
    Barrons.com

    Tesla Competitor Nio Is Soaring. Here’s Why.

    The Chinese EV pioneer announced a deal for more cash from the local government in Hefei, where it operates. “Under the framework agreement, Hefei government expects to provide resources and funding support for the long-term growth of NIO in Hefei,” reads the company's news release. There is limited cash flow detail provided in NIO's quarterly updates.

  • Palo Alto Networks stock plunges toward worst day since 2017 amid wave of downgrades
    Business
    MarketWatch

    Palo Alto Networks stock plunges toward worst day since 2017 amid wave of downgrades

    Shares of Palo Alto Networks Inc. are sliding toward their worst single-day percentage drop in three years after the cybersecurity company posted disappointing results that shook investor confidence. At least five analysts lowered their rating on Palo Alto Networks shares (PANW) after the report, according to FactSet, as shares traded down 15.5% in Tuesday's session.

  • Former hedge-fund manager says this is the ‘No. 1 retirement stock in America’
    Business
    MarketWatch

    Former hedge-fund manager says this is the ‘No. 1 retirement stock in America’

    Your retirement is safe in the hands of Warren Buffett. At least that's the message former hedge-fund manager Whitney Tilson, who now runs Empire Financial Research, has for investors approaching their golden years, according to a note published by ValueWalk this week.

  • Bob Iger To Step Down As Disney CEO Immediately; Stock Falls Late
    Business
    Investor's Business Daily

    Bob Iger To Step Down As Disney CEO Immediately; Stock Falls Late

    Walt Disney Co. CEO Bob Iger on Tuesday said he would step down from that post, a departure he said would free him up from the day-to-day responsibilities of the job to focus on the creative side of the mammoth multimedia and theme-park company. Disney stock was down in afternoon trade. Iger hands the reins to Bob Chapek, effective immediately, making Chapek only the seventh chief executive of the company, which has spent the past 15 years transforming into a movie and digital-media powerhouse that now competes with Netflix and HBO.

  • Mike Bloomberg has done an about-face on Wall Street reform
    Business
    Yahoo Finance

    Mike Bloomberg has done an about-face on Wall Street reform

    MIA on banking reform — or taking the side of industry For instance, he promises to toughen bank capital rules so that big banks do not collapse under the weight of their own debt obligations, as they did during the 2008 financial crisis. Yet, prior to the crisis, he pushed for weakening bank capital rules through adoption of the so-called “Basel II” accords. Basel II would have released hundreds of billions of equity capital from the U.S. banking system, giving particular relief to banks with large portfolios of mortgages and mortgage-backed securities.

  • China faces the possibility of a financial crisis, which would send a shockwave through the world
    Business
    MarketWatch

    China faces the possibility of a financial crisis, which would send a shockwave through the world

    Instead, the real-world effects are already happening, and they will materially affect supply chains, company earnings and your investment portfolio. Value investors over history have generated superior returns by focusing on buying existing streams of cash flow rather than promises of a bright future from growth companies currently burning cash. Sometimes in investing, if you focus on the here-and-now, you can mitigate the risks of an uncertain future.

  • Salary Needed to Afford Home Payments in the 15 Largest U.S. Cities – 2020 Edition
    Business
    SmartAsset

    Salary Needed to Afford Home Payments in the 15 Largest U.S. Cities – 2020 Edition

    Affording home payments is a struggle many homeowners face, especially in a large city with high living costs. To find the salary needed to afford home payments, we looked at data for the 15 largest U.S. cities across five factors: median home value, property tax rate, down payment, homeowners insurance and other monthly debt payments. This is SmartAsset's third study on the salary needed to afford home payments in the 15 largest U.S. cities.