Walmart (WMT) Tops Q3 EPS by 7c, U.S. Comps Up 3.2%, Comments on Guidance

November 14, 2019 7:03 AM

Walmart (NYSE: WMT) reported Q3 EPS of $1.16, $0.07 better than the analyst estimate of $1.09. Revenue for the quarter came in at $128 billion versus the consensus estimate of $128.64 billion.

Guidance:

FY20 adjusted EPS is now expected to increase slightly compared to FY19 adjusted EPS.

"We're pleased with our performance for the quarter. Our associates are responding to change in an inspiring way, and we're proud of them. The Walmart U.S. business saw strong comp sales and expense leverage, and operating income grew for the sixth consecutive quarter. We also celebrated the first anniversary of Flipkart and PhonePe as part of the Walmart family. It was great to see record sales in India during The Big Billion Days event. Looking ahead, we're prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers. Our associates are working hard to ensure we succeed -- one customer, one interaction at a time." Doug McMillon President and CEO, Walmart.

Commenting on the results, BMO Capital analyst Kelly Bania said results were ahead of expectations due to a better than expected tax rate, partly offset by larger than expected FX headwinds. Meanwhile, at Walmart U.S., both comps and e-commerce growth were ahead of expectations and "importantly margins in e-commerce continued to improve." Bania has an Outperform rating on the stock.

For earnings history and earnings-related data on Walmart (WMT) click here.

(updated at 10:20am ET with analyst comments)

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