Walmart stock rises after profits, sales top expectations as company raises full-year forecasts

Core Insights - Walmart reported third quarter profits and sales that exceeded forecasts, indicating growth in a challenging consumer environment [1] - Adjusted earnings per share were $0.62, surpassing the expected $0.60, while revenue rose 6% year-over-year to $179.5 billion, above the anticipated $177.6 billion [1] Financial Performance - Same-store sales in the US increased by 4.5%, exceeding the forecast of 4% [2] - Foot traffic rose by 1.8% and the average ticket increased by 2.7% in US stores [2] - Walmart raised its fiscal year guidance, expecting net sales to grow between 4.8%-5.1%, up from a previous range of 3.75%-4.75% [3] - Adjusted earnings are now projected to be between $2.58-$2.63, an increase from the earlier expectation of $2.52-$2.62 [3] Business Segments - The wholesale business, Sam's Club, grew by 3.8%, which was below the 4.8% predicted by Wall Street [3] - Global eCommerce sales surged by 27% during the quarter [3] - Grocery sales increased by low single digits, attributed to price rollbacks and delivery convenience, with grocery making up about 60% of total sales in the US [5] Consumer Insights - CEO Doug McMillon noted strength across income cohorts, particularly among higher-income households [2] - CFO John David Rainey highlighted a moderation in spending among low-income consumers, with significant wage growth disparity observed [6]