Walmart (NYSE: $WMT) is one of the largest multinational retailers. Based in Bentonville, AR, it operates a chain of hypermarkets, grocery stores, and discounted departmental stores throughout America.
On Thursday, May 16, the retail corporation unveiled their quarter-one earnings for fiscal year 2025, which fueled the stock to jump more than 7% in early trading hours.
Walmart Beats Estimates in Q125
Walmart reported excellent first-quarter results with robust revenue and operating income, which has surged the price and the overall market cap.
The company posted revenue of $161.5 billion, growing 6% compared to Q124’s $152.3 billion. This exceeded estimates of $159.58 billion by 1.21%. Its reported Earnings per share (EPS) of $0.60 also beat estimates by 13.21%.
Total same-store sales in the U.S. rose 3.9% year over year, driven primarily by a 4.4% increase at Sam’s Club, as Americans sought deals on groceries. The wholesale retailer achieved a record high in transaction counts and members, leading to a more than 13% growth in membership income.
Additionally, global inventory decreased by 2.7%, while Walmart U.S. sales decreased by 4.2%. However, in-stock levels remained healthy.
Leadership Team Comments
Walmart’s president and CEO, Doug McMillon, said, “Our team delivered a great quarter. Around the world, our goal is simple—we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business.”
He added, “The momentum we see across the business is driven by growth in units sold and transaction counts as well as market share gains, including in general merchandise. These are not inflation-driven results.”
Walmart’s CFO, John David Rainey, said, “Customers are continuing to come to Walmart for not only value but also convenience.”
The company also released its guidance for the next quarter. They anticipate net sales to grow between 3.5% to 4.5% and operating income from 3.0% to 5.0%.
Positive CPI Data
U.S. stock futures are edging up, indicating a potential continuation of the Wall Street rally that began after data showed a slowdown in inflation in April. The consumer price index growth came as anticipated by the analyst of 3.4 on an annualized basis in April. However, local demand shows signs of cooling down as America still struggles with higher gas prices, rents, and car premium insurance.
The Bureau of Labor Statistics released data this Wednesday, showing the prices are still at 3.4%, much lower than the 9.1% rate in June 2022. This easing inflation has boosted sales for groceries and non-essential merchandise such as clothing and electronics, driving its shares to a record high for Walmart.
Walmart (WMT) Stock Performance
On Thursday, WMT stock opened at $64.22 and closed at $64.01, with a gain of 6.99%%. At the time of writing, the market cap is $515.907 billion, with an average 24-hour trading volume of 18,449,149. Its current market cap marks the company’s first rise above $500 billion. The 52-week range for the stock is a high of $64.42 and a low of 48.34.
Should You Invest in WMT?
Walmart is one of the largest companies, owning grocery and department stores throughout the United States. The company has posted remarkable quarter-one results for fiscal 2025 with impressive guidance for the second quarter.
Its new $500+ billion valuation signals its growing dominance in the retail sector. Thus far, the company has done much better than its peers, including building its online platforms. In the long run, such efforts will help it grow its customer base while retaining high-income customers that have come onboard amidst cooling inflation.
While Walmart is not immune to current headwinds, management’s ability to maneuver them, coupled with a strong balance sheet, place it in a favorable position. Consequently, the stock would be a great addition to an investment portfolio with long-term goals.
Click Here for Updates on Walmart – It’s FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.