Walmart Inc.’s season of change might be rolling on — but the giant company’s finances are holding strong.
The retailer is already preparing for its long-time chief executive officer Doug McMillon to pass the baton to company veteran and Walmart U.S. chief John Furner. Now it’s jumping to the tech-heavy Nasdaq from the New York Stock Exchange, reflecting the evolution of the business, from brick and mortar retailer to multitool consumer player.
While its long-time competitor Target Corp. is also changing leadership right now, Walmart is doing so from a stronger and larger base.
Third-quarter net earnings increased 34.2 percent to $6.1 billion while adjusted EPS came in at 62 cents, a couple pennies ahead of the 60 cents analysts forecast, according to Yahoo Finance. Revenues for the three months ended Oct. 31 jumped 5.8 percent to $179.5 billion — $4.3 billion more than Wall Street forecast.
Comparable sales in the U.S. discount division grew 4.5 percent on broad-based strength. Global e-commerce grew by 27 percent, with a boost from online marketplace sales of apparel from third parties, while the newish advertising business expanded by 53 percent.
“We’re gaining market share, improving delivery speed, and managing inventory well,” McMillon said.
Accordingly, Walmart increased its annual outlook and is now looking for adjusted EPS of $2.58 to $2.63, up from the $2.52 to $2.62 forecast in August. Sales are slated to rise by 4.8 percent to 5.1 percent, above the 3.8 percent to 4.8 percent seen previously.
On Dec. 9, Wall Street’s Walmart party will move to the Nasdaq, where the company will continue to trade under the “WMT” ticker.
John David Rainey, chief financial officer, said: “Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy. Walmart is setting a new standard for omnichannel retail by integrating automation and AI to build smarter, faster and more connected experiences for customers, while enabling our associates to deliver even greater value at scale. We are appreciative of our long partnership with such a storied institution as the New York Stock Exchange and are excited about partnering with Nasdaq on this next chapter of our growth story.”
