Walmart (WMT) stock is one of the best Dow Jones stocks Thursday after the retail giant beat top- and bottom-line expectations for its fiscal second quarter and raised its full-year outlook.
In the three months ended July 31, Walmart's revenue increased 4.8% year-over-year to $169.3 billion, thanks in part to a 21% spike in global e-commerce sales. Its earnings per share (EPS) improved 9.8% from the year-ago period to 67 cents. At Walmart U.S. and Sam's Club, same-store sales were up 4.2% and 5.2%, respectively, excluding fuel.
"Our team delivered another strong quarter," said Walmart CEO Doug McMillon in a statement. "Each part of our business is growing – store and club sales are up, e-commerce is compounding as we layer on pickup and even faster growth in delivery as our speed improves. Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $168.5 billion and earnings of 65 cents per share, according to Yahoo Finance.
As a result of its strong first half, Walmart raised its full-year outlook. The company now expects fiscal 2025 revenue growth in the range of 3.75% to 4.75% and earnings per share to arrive between $2.35 to $2.43, up from its previous forecast of revenue growth between 3% to 4% and EPS of $2.23 to $2.37.
Walmart also provided guidance for its fiscal third quarter, calling for revenue to grow between 3.25% to 4.25% and earnings per share of 51 cents to 52 cents.
Is Walmart stock a buy, sell or hold?
Walmart has been the best Dow stock so far in 2024, up nearly 40% including today's pop. Unsurprisingly, Wall Street is overwhelmingly bullish on the blue chip stock.
For one, the consensus recommendation among the 40 analysts following WMT tracked by S&P Global Market Intelligence is a Buy and with strong conviction to boot. However, analysts have had a hard time keeping up with Walmart's impressive rally. Indeed, the average price target of $73.94 is right around where the stock is trading today. Price-target hikes could come down the pike after the positive earnings reaction.
"Those who have been following our work know that we have declared Walmart the poster child of our investing theme: Companies who have pivoted to digitization, robotics, the cloud and generative AI (and the suppliers of the picks and shovels)," said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, in a statement.
Tengler adds that Walmart is the investment firm's biggest holding among large-cap stocks in the consumer staples sector.
Related Content
-
Five Scary Things the IRS Can Do If You Owe Back TaxesTax Law Traveling in 2025? The IRS can take your passport (and house) if you don’t pay your tax bill.
-
Five Reasons Why You Should Review Your Medicare Advantage Plan Before Open Enrollment EndsMedicare Advantage enrollees have until March 31 to make changes to their selections.
-
Want to Hire a Financial Planning Firm? Five Questions to AskThe key to finding a financial planner who will do great work for you and your family is knowing what to look for during your search.
-
Five Top Insurance Scams to Watch Out ForScammers are always looking to take advantage of unsuspecting people, and insurance issues are prime targets. Here's how to avoid falling victim.
-
Stock Market Today: Mixed Messages Muddle MarketsStocks cruised into pre-market action on encouraging news for the AI revolution but stumbled on yet another policy disturbance.
-
eBay Stock Slides on Soft OutlookeBay stock is falling Thursday after the e-commerce company topped fourth-quarter expectations but issued a soft first-quarter outlook.
-
Salesforce Stock Sinks to the Bottom of the Dow After EarningsSalesforce stock tumbled out of the gate Thursday after the tech giant reported mixed fourth-quarter results and issued a soft forecast for the year ahead.
-
Snowflake Stock Rallies on Rising RevenueSnowflake stock is surging Thursday after the cloud company beat fourth-quarter expectations, issued strong guidance and expanded a partnership with Microsoft.
-
A Little-Known Tax Buster for Rich Retirees: Zero-Coupon DSTMaybe you've heard of using Delaware statutory trusts to defer taxes on real estate investments, but zero-coupon DSTs take those benefits a step further.
-
Once You Hit 55, Is the Stock Market Still Your Best Bet?If you're investing heavily in the twists and turns of the stock market in your 50s or 60s, you may be risking too much.
