WMT Earnings: Walmart Reports Better-than-Expected Q1 Results

Walmart (NYSE:WMT) reported Q1 results that beat estimates on Thursday. The major retailer generated revenue of $161.5 billion, up by 5.8% on a constant currency basis that exceeded consensus estimates of $159.6 billion.  Comparable sales grew by 3.8% in the first quarter.

Furthermore, Walmart reported adjusted earnings of $0.60 per share in Q1, compared to earnings of $0.49 per share in the same period last year, surpassing Street estimates of $0.53 per share.

Q1 Business Highlights

Walmart’s e-commerce sales, which grew by 21% during the first quarter, contributed 280 basis points to its comparable sales. Moreover, WMT’s international sales grew by 12.1% year-over-year to $29.8 billion.

Additionally, Walmart’s advertising business saw a significant 24% growth in Q1, with its Connect segment in the U.S. leading the way with a 26% increase. Walmart Connect serves as the retailer’s advertising platform, connecting brands with their target customers.

Walmart’s U.S. operations remained the primary revenue driver, accounting for over 65% of its total Q1 revenues of $161.5 billion.

WMT’s Q2 and FY25 Outlook

In the second quarter, WMT expects a 3.5% to 4.5% increase in net sales, with adjusted earnings expected to range between $0.62 and $0.65 per share.

For FY25, the company has raised its guidance, projecting net sales to reach the higher end or slightly exceed its previous outlook of 3% to 4%. Adjusted earnings for FY25 are expected to be at the higher end or surpass the previous guidance range of $2.23 to $2.37 per share.

Is Walmart Stock a Buy or Hold?

Analysts remain bullish about WMT stock, with a Strong Buy consensus rating based on 24 Buys and three Holds. Over the past year, WMT has increased by more than 20%, and the average WMT price target of $66.23 implies an upside potential of 10.7% from current levels. These analyst ratings are likely to change following WMT’s Q1 results today.