Shares in Walmart (NYSE:WMT) were on the march Thursday morning, amid favourable economic news.
The retail behemoth raised its forecast for the year on Thursday, as quarterly revenue grew nearly 5%, the company’s stores and website drew more visits and sales outside the grocery department improved.
The discounter beat Wall Street’s expectations for sales and profits.
Walmart said it now expects sales to rise by 3.75% to 4.75% for the full year, and adjusted earnings to come in between $2.35 and $2.43 per share. It previously said it expected to be on the high end or slightly above its initial full-year guidance, which called for net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.
While Walmart raised its outlook, its projected second half of the year may not be as strong as Wall Street anticipated. The retailer expects adjusted earnings of 51 to 52 cents per share in the third quarter, below analysts’ expectations of 54 cents. Analysts also expected adjusted earnings of $2.43 per share for the year — the highest point of Walmart’s guidance.
Chief Financial Officer John David Rainey said the company’s brighter outlook reflects strength in the first half of the year. He said Walmart decided against raising expectations for the back half of the year, especially since the 2024 election, unrest in the Middle East and other dynamics may influence consumer sentiment.
WMT shares jumped $4.25, or 6.2%, to $72.85.
