Walmart’s (WMT) second-quarter earnings report, which led to a 6.4% jump in its stock during normal trading hours, reveals strong financial results. The company reported revenue of $169.3 billion, exceeding analysts’ estimates of $167.4 billion by 1.2%. Additionally, Walmart saw an 8.5% rise in operating income. Doug McMillon, Walmart’s President and CEO, noted, “Our team delivered another strong quarter… Each part of our business is growing.” This performance underscores Walmart’s continued strength in both physical stores and eCommerce.
Walmart’s EPS Beats Consensus by Significant Margin
Walmart’s adjusted EPS for the quarter came in at $0.67, surpassing the analysts’ consensus estimate of $0.65. This performance, along with a GAAP EPS of $0.56, reflects Walmart’s robust financial health. The earnings boost was driven by improved gross margins and a reduction in eCommerce losses. A Walmart spokesperson explained, “Our gross profit rate increased due to improved eCommerce margins and growth in higher-margin businesses.”
WMT’s eCommerce Sales Surge Across Global Markets
Walmart reported a 21% growth in global eCommerce sales, with a notable emphasis on store-fulfilled pickup and delivery services. In the U.S., Walmart Connect’s advertising revenue jumped by 30%, highlighting the company’s expanding influence in digital marketing. This eCommerce and advertising growth signals Walmart’s effective adaptation to changing consumer behaviors and digital trends.
WMT Continues Share Repurchases
Walmart remains committed to enhancing shareholder value through active share repurchases. This strategy reflects the company’s confidence in its ongoing financial performance and its focus on returning capital to investors.
Walmart’s Q3 and FY25 Guidance Shows Optimistic Outlook
Looking ahead, Walmart expects net sales to grow by 3.25% to 4.25% in Q3, with operating income rising by 3.0% to 4.5%. For Fiscal year 2025, the company projects net sales growth of 3.75% to 4.75% and adjusted operating income growth of 6.5% to 8.0%.
Is Walmart Stock a Good Buy?
Analysts remain bullish about WMT stock, with a consensus Strong Buy rating based on 27 Buys and three Holds. Over the past year, WMT has increased by more than 35%, and the average WMT price target of $74.11 implies an upside potential of 1.4% from current levels. These analyst ratings are likely to change following WMT’s results today.
