Wal-Mart quarterly revenue and earnings beat estimates, same store sales up 2.7%

Earnings per share of $1 and total revenue of $123.179 billion in the third quarter for Wal-Mart Stores beat what equity analysts expected. The closely watched metric of comp sales rose 2.7% at Walmart U.S., well ahead of the 1.2% in the same quarter of 2016.

Net income in the third quarter was $1.749 billion, 42% below the $3.034 billion in the same quarter of 2016. However, the Bentonville-based global retailer paid $1.344 billion in the quarter to reduce debt. The adjusted earnings per share of $1 per share beat the Wall Street estimate of 97 cents per share. The adjusted earnings per share included 45 cents per share on debt retirement and 9 cents per share to cover ongoing costs related to allegations the company violated the Foreign Corrupt Practices Act.

Total quarterly revenue of $123.179 billion was 4.2% higher than the same quarter of 2016 and beat the consensus estimate of $121 billion.

“We have momentum, and it’s encouraging to see customers responding to our store and eCommerce initiatives,” Wal-Mart Stores President and CEO Doug McMillon said in the earnings report posted early Thursday (Nov. 16).

Total revenue in the first three quarters of the company’s fiscal year totaled $364.076 billion, up 2.6% compared to the same period in 2016. Net income in the first three quarters is $7.687 billion, down 22% compared to the same period in 2016.

The company’s three segments all posted sales gains in the quarter, and two of the three segments posted operating income gains.

SEGMENT PERFORMANCE
• Walmart U.S.
Net sales Q3 2017: $77.724 billion
Net sales Q3 2016: $74.55 billion

Operating income Q3 2017: $4.03 billion
Operating income Q3 2016: $3.999 billion

• Walmart International
Net sales Q3 2017: $29.548 billion
Net sales Q3 2016: $28.39 billion

Operating income Q3 2017: $1.249 billion
Operating income Q3 2016: $1.354 billion

• Sam’s Club
Net sales Q3 2017: $14.864 billion
Net sales Q3 2016: $14.236 billion

Operating income Q3 2017: $447 million
Operating income Q3 2016: $396 million