Yahoo Finance Walmart Inc (WMT) Posts Revenue Growth and Raises FY24 Guidance
Walmart Inc (NYSE:WMT) reports a 5.2% increase in revenue, reaching $160.8 billion in Q3.
Adjusted EPS climbs to $1.53, with the company raising its full-year sales and EPS outlook.
Global eCommerce sales surge by 15%, with U.S. eCommerce up 24%.
Operating cash flow grows to $19.0 billion, marking a $3.3 billion increase.
On November 16, 2023, Walmart Inc (NYSE:WMT) released its 8-K filing, announcing its third-quarter results which showcased robust revenue growth and operational efficiency. The retail giant saw consolidated revenue climb to $160.8 billion, a 5.2% increase, with a notable 4.9% rise in Walmart U.S. comparable sales. Adjusted earnings per share (EPS) for the quarter reached $1.53, prompting the company to raise its full-year sales and EPS guidance to a range of 5.0% to 5.5% and $6.40 to $6.48, respectively.
Financial Performance Overview
Walmart Inc (NYSE:WMT) reported a strong financial performance in the third quarter, with consolidated gross margin rate improving by 32 basis points, partially due to a favorable shift in the timing of Flipkart's The Big Billion Days event. Operating expenses as a percentage of net sales decreased by 182 basis points, lapping a discrete charge from the previous year. Adjusted operating income saw a 3.0% uptick, positively influenced by currency and LIFO impacts.
Income Statement Highlights
The company's income statement reflected a solid quarter, with a significant increase in operating income of $3.5 billion, or 130.1%. Return on assets (ROA) stood at 6.5%, and return on investment (ROI) reached 14.1%, up 130 basis points. Walmart's global advertising business grew by approximately 20%, with Walmart Connect and Sam's Club Member Access Program (MAP) increasing by 26% and 27%, respectively.
Balance Sheet and Cash Flow Insights
Walmart Inc (NYSE:WMT) maintained a healthy balance sheet with cash and cash equivalents totaling $12.2 billion and total debt at $55.4 billion. The company generated a robust operating cash flow of $19.0 billion, an increase of $3.3 billion from the previous year. Free cash flow also saw an uptick, reaching $4.3 billion, a $0.7 billion increase. Walmart continued its share repurchase program, buying back 8.7 million shares year-to-date for $1.3 billion.
Segment Performance
Walmart U.S. delivered a 4.4% increase in net sales, with eCommerce contributing significantly to comparable sales. The segment saw a modest decline in general merchandise sales but experienced strong growth in grocery and health & wellness. Walmart International reported a 10.8% increase in net sales, with operating income up by 29.7%. Sam's Club U.S. posted solid comp sales, led by food, consumables, and healthcare, and recorded a 16% growth in eCommerce sales.
Executive Commentary
President and CEO Doug McMillon commented on the quarter's success, stating,
We had strong revenue growth across segments for the quarter, and were excited to get an early start to the holiday season. From a Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics, and seasonal decorations, we're here to help families from around the world make this a special time."
He also noted that inventory is in good shape and the teams are focused, with associates ready to serve customers and members.
Looking Forward
With a strong quarter behind it, Walmart Inc (NYSE:WMT) is optimistic about the remainder of the fiscal year. The company's raised guidance reflects confidence in its ability to continue delivering value to customers and shareholders alike. As Walmart Inc (NYSE:WMT) heads into the final quarter of FY24, investors and value seekers will be watching closely to see if the retail giant can maintain its momentum during the critical holiday season.
For a detailed analysis of Walmart Inc (NYSE:WMT)'s financial results and further insights into its performance, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Walmart Inc for further details.
This article first appeared on GuruFocus.
