Walmart gains 6% to a new ATH after record earnings 💰

Walmart (WMT.US) is gaining over 6.00% in pre-market trading after reporting solid data for the second quarter of the fiscal year 2025. Walmart, with 10,500 brick-and-mortar stores in the U.S. and operating in over 19 countries as an e-commerce platform, is the largest supermarket chain in the world. Therefore, the strong results of the giant for the past quarter may confirm the good condition of the U.S. economy, particularly the consumer sector. Although the results pertain to the past quarter, Walmart has also increased its forecasts for the remainder of the year.

Key Financial Indicators (Q2 FY25)

• Revenue: $169.3 billion (up 4.8%)
• Operating profit: $7.94 billion (up 8.5%)
• Global eCommerce sales: Up 21%
• Comparable sales in the U.S.: Up 4.2% (excluding fuel)
• Gross margin: Up 43 basis points
• Adjusted EPS: $0.67
• Free cash flow: $5.9 billion (down $3.1 billion year-on-year)

Updated Forecasts for Fiscal Year 2025

• Net sales growth: Expected to rise by 3.75% to 4.75% (compared to previous forecasts of 3.0% to 4.0%).
• Adjusted operating profit growth: Expected to rise by 6.5% to 8.0% (compared to previous forecasts of 4.0% to 6.0%).
• Adjusted EPS: Projected to be in the range of $2.35-$2.43 (up from $2.23-$2.37 previously).
• Forecast for Q3: Net sales growth of 3.25% to 4.25%; operating revenue growth of 3.0% to 4.5%.

Changes in management

Walmart announced the appointment of Bob Moritz, retired chairman of PricewaterhouseCoopers (PwC), to the board of directors effective August 15, 2024. Moritz will become the twelfth member of the board and will sit on the Audit Committee as well as the Technology and eCommerce Committee. Moritz recently retired from PwC after a 39-year career during which he held several leadership roles, including Global Chair.

Walmart (D1 interval)

Walmart’s stock price is gaining over 6.00% in pre-market trading. The opening price is currently $72.85, which is a new all-time high. Strong results and bullish prospects are supporting the stock. The company remains in a strong upward trend, with cumulative growth reaching 40% since the beginning of 2024. Noteworthy is the very low volatility in the company’s stock. During times of market panic, Walmart's shares reacted with much smaller declines.

Source: xStation 5