After yesterday’s solid (inventory liquidation driven) earnings from Target, many were hoping for follow through today from the OG, the world’s largest retailer WMT which reported Q3 results at 7:00am ET. Alas, those same long-suffering consumer discretionary investors were in for more disappointment when the retailing giant reported earnings that generally beat on revenue and earnings, and even though it raised its previous guidance, the numbers came in shy of Wall Street estimates which in turn sent its stock tumbling.
Let’s take a closer look at what WMT reported, starting with Q3 historicals:
- Adjusted EPS $1.53 vs. $1.50 y/y, just barely beating the (previously lowered) consensus estimate of $1.52
- Revenue $160.80 billion, +5.2% y/y, beating the estimate of $159.13 billion (global eCommerce net sales hit $24
billion, reaching 15% of net sales; they were up 15% led by pickup and delivery) - Total US comparable sales ex-gas +4.7%, beating the consensus estimate +3.35%
- Walmart-only US stores comparable sales ex-gas +4.9%, beating consensus estimate +3.46%
- Sam’s Club US comparable sales ex-gas +3.8%, beating estimate +3.66%
- The increase in Walmart’s comp store sales was notable because both Target and Home Depot reported declines in that metric this week, as consumers continued to pull back from discretionary purchases.
The key charts:
So far so good, and if that was the extent of it the stock would probably be soaring now. However, what the market threw up all over was the company’s disappointing guidance (which was raised but still failed to meet consensus estimates), as well as its cautious tone about the outlook for US shoppers after signs of weakness at the end of October.
Looking ahead, Walmart forecast that adjusted earnings for fiscal 2024 will be in the range $6.48-$6.48 a share, up from its previous outlook range of $6.36 – $6.46 a share. However, this was still viewed as weak compared to consensus: Wall Street had been estimating $6.48, which Walmart now admits may be a stretch.
- More
Maybe they would do better if they ever had any cashiers that ever dared to smile or greet you and didn’t act like you just ruined their day by bothering them.
Correct 2:50 and they should stop mimicking sloths
Always a painful experience to shop at Walmart!
Unfriendly associates and usually only one register open on weekdays!
It’s my go to only as a last resort store!
I haven’t stepped foot in a Target Store in over 5 years as well.
I will say the online shopping hasn’t been quite as bad.
Anything not to have to go inside one of these stores is a plus!
Thank O’Biden !!!! Ruined Americans Financially !!!!!!!! No $$$ for Holidays !!!!!
BY LAW Walmart should have to PAY you 20% OFF your bill for SELF-Check Out !!!! Should be LAW !!!!
Stop Holding up innocent customers at the EXIT DOOR & maybe Sales would be better !!!! DUGH
OPen Damn Registers Too !!! Wooooo !!!!!