The Walmart Q2 earnings were released today and as expected, the results were positive. In fact, Walmart’s company earnings far exceeded analysts’ expectations.
As a result, Walmart (NYSE:WMT) shares have jumped more than 10% in pre-market trading after the news broke.
Walmart Q2 Earnings Cause a Stock Soar
The global retail giant said it had the strongest growth in more than a decade in its stores that have been open for at least a year. Walmart has spent a considerable amount of money into its grocery and apparel departments to compete with Kroger and Amazon.
It seems the money poured in has paid off.
Here is what the company reported compared with the analysts’ expectations:
- Revenue: $125.97 billion expected bs. $128.03 billion
- Adjusted earnings per share: $1.22 expected vs. $1.29
- Same-store sales in the US: an increase of 2.4 percent expected vs. an increase of 4.5 percent
Walmart also said that its US online sales climbed over 40 percent this quarter. The company put money into its new website design and grocery delivery options. It seems customers are taking advantage of shopping online for their groceries and are now getting them delivered or using the pickup option more frequently.
“We’re pleased with how customers are responding to the way we’re leveraging stores and e-commerce to make shopping faster and more convenient,” CEO Doug McMillon said in a statement.
Online Competition
Walmart has been focusing on trying to compete with its biggest rival, Amazon. The company has been bulking up its online platform and presence. The company recently struck a big partnership with Lord & Taylor which brings new merchandise to its website.
Like many online retailers today, Walmart is facing higher transportation costs as fuel continues to rise and new tariffs in the potential works by President Trump’s administration.
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“While we know questions persist about tariffs, the potential future impact is difficult to quantify,” CFO Brett Biggs told CNBC. “We are closely monitoring the tariff discussions and are actively working on mitigation strategies, particularly in light of potentially escalating duties.”
Walmart Stock Movement
According to Yahoo Finance, WMT is currently trading at $99.28 a share, up $9.06 (+10.04%).
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