Shares of Walmart (NYSE: WMT) are trading moderately lower in pre-open despite the company reporting better-than-expected Q3 results.

Walmart reported Q3 EPS of $1.45 to top the analyst estimate of $1.40. Revenue for the quarter came in at $140.5 billion versus the consensus estimate of $135.6 billion.

US Q3 comp sales rose 9.2% compared to a year ago, and 15.6% compared to two years ago.

“Our momentum continues with strong sales and profit growth globally. Our omnichannel focus is pushing digital penetration to record levels. We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world,” said Doug McMillon, President and CEO, Walmart.

The company raised the FY22 EPS outlook to $6.40, higher than the consensus of $6.33. The company is expecting to see US comp sales above 6%.

Goldman Sachs analyst Kate McShane reiterated a Buy rating and Conviction Buy designation on WMT following Q3 top-line strength. The price target of $196.00 has also been maintained.

Stifel analyst Mark Astrachan reiterated a Hold rating and a $160.00 per share price target following “solid” results.

Although WMT delivered better-than-expected EPS and sales prints, the analyst also took note of EBIT at $5.8 billion, lower than the consensus of $5.9 billion.

“We view the F3Q result as solid, with strong U.S. comp growth most notable, particularly given supply chain challenges, and reflecting share gains in grocery, up high-single-digits, and solid general merchandise growth, up mid-single-digits. While costs were worse-than-expected, we think this was largely expected given current heightened costs. We anticipate WMT shares are largely unchanged on the result,” Astrachan said in a note.

Walmart shares are down 0.7% in pre-open Tuesday.