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Walmart Tops Q2 Earnings Estimates, Raises Full-Year Guidance Amid Strong eCommerce Growth

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Walmart (NYSE:WMT) delivered stronger-than-expected second-quarter earnings, pushing its shares up more than 7% intra-day today. The retail giant benefited from robust eCommerce growth and enhanced margins, signaling its solid performance in a competitive market.

The company reported adjusted earnings per share of $0.67, surpassing the Street estimate of $0.64. Revenue for the quarter reached $169.3 billion, beating the Street estimate of $168.52 billion and marking a 4.8% year-over-year increase.

Walmart's global eCommerce sales surged by 21%, driven by strong demand for store-fulfilled pickup and delivery services, as well as growth in its marketplace. The company also saw a 43 basis point improvement in its consolidated gross margin rate, largely due to gains in its U.S. and International segments.

Operating income for the quarter rose by $0.6 billion, or 8.5%, supported by higher gross margins, increased membership income, and reduced eCommerce losses.

Looking ahead, Walmart provided guidance for the third quarter, expecting earnings per share between $0.51 and $0.52, slightly below the analyst consensus of $0.54. However, the company raised its full-year fiscal 2025 outlook, projecting earnings per share in the range of $2.35 to $2.43, aligning with the current analyst estimate of $2.43 and an improvement from the previous guidance of $2.23 to $2.37.

Additionally, Walmart now anticipates consolidated net sales to grow by 3.75% to 4.75% for 2025, up from the earlier forecasted range of 3% to 4%.

In a sign of improved supply chain management, Walmart also reported a 2% reduction in global inventory, including a 2.6% decrease for Walmart U.S., indicating the company’s continued focus on operational efficiency.

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