Walmart beats first quarter estimates, becomes more optimistic about the year

Walmart Inc. started 2024 with some momentum — and is feeling more optimistic about the year.

The mass market giant’s first-quarter net income jumped more than 200 percent to $5.1 billion, or 63 cents per share. Adjusted earnings per share edged up 22.4% to 60 cents, still well above the 52 cents forecast by analysts, according to Yahoo Finance.

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Revenue for the quarter ended April 30 rose 5.9 percent to $161.5 billion from $152.3 billion a year earlier, with same-store sales up 3.8 percent. in the USA.

Walmart’s global e-commerce business – which surpassed $100 billion in sales for the first time last year – grew 21% in the quarter thanks to orders fulfilled from the store network. company and its third-party marketplace.

The company’s advertising business grew 24 percent, showing continued growth in what many consider a profit center given Walmart’s massive reach to consumers.

Walmart is renovatingWalmart is renovating

Fashion a newly renovated Walmart.

Inventory levels fell 2.7% from last year, including a 4.2% drop in the United States, where the retailer is looking to operate efficiently and meet the needs of consumers hit hard by the pandemic. ‘inflation.

“Our team had a great quarter,” Doug McMillon, president and CEO, said in a statement. “Around the world, our goal is simple: we strive to save our customers time and money. It’s inspiring to see how our associates simultaneously execute on fundamentals and innovate to make shopping with us more enjoyable and convenient. We are people-led and technology-driven, and this combination powers our business.

Walmart now expects to be “at the high end of or slightly above” its previous revenue and net income forecasts, calling for adjusted earnings of $2.23 to $2.37 per share. and sales growth of 3 to 4 percent.

Investors liked what they saw and sent Walmart shares up 4.5% to $62.52 in premarket trading.

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