Walmart Inc (WMT) announced impressive second-quarter results on Thursday, exceeding analysts’ expectations and boosting its full-year guidance. The retail giant reported adjusted earnings per share (EPS) of 67 cents, representing a 9.8% year-over-year increase, surpassing the consensus estimate of 64 cents. Sales reached $169.34 billion, up 4.8% year-over-year (5.0% at constant currency), outperforming the anticipated $168.57 billion.
For the third quarter, Walmart expects adjusted EPS to fall between $0.51 and $0.52, slightly lower than the consensus estimate of $0.55. The company forecasts sales to range from $164.58 billion to $166.17 billion, compared to the projected $167.11 billion. Looking ahead to fiscal year 2025, Walmart raised its adjusted EPS outlook to $2.35-$2.43 (from $2.23-$2.37), exceeding the consensus estimate of $2.43. The company also increased its net sales growth guidance for FY25 (at constant currency) to 3.75%-4.75% from the previous 3.0%-4.0%.
This positive news fueled a 6.6% surge in Walmart’s stock price, closing at $73.18 on Thursday. Following the earnings announcement, analysts adjusted their price targets for Walmart. Telsey Advisory Group analyst Joe Feldman maintained an Outperform rating and increased the price target from $75 to $82. Similarly, Morgan Stanley analyst Simeon Gutman reiterated an Overweight rating and boosted the price target from $75 to $82.
These adjustments reflect analysts’ confidence in Walmart’s continued strong performance and the company’s ability to navigate the current economic landscape. Walmart’s robust earnings and increased guidance signal a positive outlook for the retail giant and its ability to maintain its position as a leader in the industry.
