Walmart Boosts FY25 Outlook As Q3 Results Top Estimates

(RTTNews) - Retail giant Walmart, Inc. (WMT) reported Tuesday a profit for the third quarter that soared from last year, reflecting improved gross margins and strong growth across all its operating segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The retailer also raised its outlook for the full-year 2025.

Shares of the retailer are up $1.59 or 1.90 percent to $85.67 in pre-market trading.

"We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and to transform our business. In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that," said Doug McMillon, President and CEO.

For the third quarter, consolidated net income attributable to Walmart for the quarter was $4.58 billion or $0.57 per share, sharply higher than $453 million or $0.06 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.58 per share, compared to $0.51 per share in the year-ago quarter.

On average, 34 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and membership and other income, grew 5.5 percent to $169.59 billion from $160.80 billion in the same quarter last year. Analysts were looking for revenues of $166.62 billion for the quarter.

Revenues increased 6.2 percent to $170.82 billion in constant currency.

Global eCommerce grew 27 percent with penetration up across all segments, led by store-fulfilled pickup & delivery and marketplace. Global advertising business grew 28 percent, including 26 percent for Walmart Connect in the U.S.

Net sales grew 5.4 percent to $168.0 billion, and Membership and other income increased 16.1 percent to $1.59 billion from last year. Consolidated U.S. comp sales, without fuel, increased 5.5 percent.

Walmart U.S. comp sales, without fuel, increased 5.3 percent and net sales rose 5.0 percent to $114.88 billion. Walmart U.S. eCommerce sales grew 22 percent and Walmart Connect advertising sales grew 26 percent.

Sam's Club comp sales, without fuel, increased 7.0 percent and net sales also grew 3.9 percent to $22.85 billion from last year. Membership income increased 15.0 percent. eCommerce sales were up 26 percent.

Net sales at Walmart International grew 8.0 percent to $30.28 billion, with strength in Walmex, Flipkart and China. Net sales also increased 12.4 percent to $31.5 billion in constant currency. eCommerce sales increased 43 percent and Advertising business grew 50 percent.

Consolidated gross margin rate was up 21 basis points, reflecting improvements across segments, led by Walmart U.S.

Looking ahead to fiscal 2025, the company now projects adjusted earnings in a range of $2.42 to $2.47 per share on consolidated constant currency net sales growth of about 4.8 to 5.1 percent.

Previously, the company expected adjusted earnings in the range of $2.35 to $2.43 per share on consolidated constant currency net sales growth of about 3.75 to 4.75 percent.

The Street is looking for earnings of $2.45 per share on a revenue growth of 4.97 percent to $674.57 billion for the year.

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