📊 Q2 Results Beat Expectations
Walmart reported a revenue of $169.3B for Q2 2024, up 5% from last year, beating analysts’ expectations of $168.6B. Earnings per share were 67 cents, surpassing the anticipated 65 cents. The company's net income dropped to $4.5B, compared to $7.89B the previous year, due to higher operational costs.
📈 Raised Full-Year Outlook
Buoyed by strong Q2 results, Walmart raised its full-year outlook. The company now expects a 3.75% to 4.75% increase in sales and adjusted earnings per share between $2.35 and $2.43. This is up from the previous guidance of $2.23 to $2.37 per share.
⚠️ Cautious Second Half Outlook
Despite the strong start, Walmart is cautious about the second half of the year. CFO John David Rainey cited potential economic challenges like the upcoming 2024 election and global unrest. Walmart expects Q3 earnings of 51 to 52 cents per share, below analysts' forecast of 54 cents.
🛒 Consumer Behavior and Sales Trends
Walmart reported stable consumer health, with consistent spending patterns and a strong back-to-school season. E-commerce sales grew by 22% in the U.S., and general merchandise sales saw a slight increase for the first time in 11 quarters. The company also noted that inflation had flattened, helping drive unit sales growth.
How will Walmart's cautious outlook affect its stock price?
