Topline
Walmart’s stock rallied as trading opened Thursday after the retailer reported robust quarterly revenues, beating out Wall Street’s estimates as business was fueled by a surge in online shopping and rising popularity among high-income consumers.
The retailer reported a boost in foot traffic, but online shopping emerged as a bright spot ahead of the holidays.
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Key Facts
Shares of Walmart rose more than 5.6% to above $106 shortly after trading opened Thursday, pacing what would be the stock’s second-largest gain this year behind a 9.5% rally in April—the stock is up more than 6% as of 10:40 a.m. EST.
The retailer reported earnings per share of 62 cents and revenues of $179.5 billion through its latest quarter on Thursday, surpassing analysts’ estimates of 60 cents and $177.4 billion, according to FactSet.
Walmart’s online shopping sales rose 27% globally, driven by a 28% increase in the U.S. and an uptick in store-fulfilled delivery of online orders, a 53% surge for its global advertising business and its third-party marketplace becoming more popular among consumers, the retailer reported.
Walmart expects sales for the year to increase by up to 5.1% and for earnings to fall between $2.58 and $2.63, above earlier expectations of 4.75% and a range of $2.52 to $2.62.
John Rainey, Walmart’s chief financial officer, told CNBC the retailer gained more “value-seeking” customers across incomes, as more Americans are “looking to do business with those companies that are providing value,” though traffic was “more pronounced” among high-income shoppers.
What To Watch For
Walmart, which trades on the New York Stock Exchange, said Thursday it will transfer the listing of its common stock to the Nasdaq Stock Market and begin trading there starting Dec. 9.