Walmart Inc. (NYSE:WMT) Surpasses Q3 Earnings Estimates

• Walmart's earnings per share (EPS) of $0.58 exceeded expectations, showcasing the company's robust financial performance.
• The retailer's revenue reached approximately $169.6 billion, surpassing estimates and indicating strong sales growth.
• Walmart raised its fiscal 2025 guidance, reflecting confidence in continued financial health and market strength.

Walmart Inc. (NYSE:WMT) is a leading global retailer known for its wide range of products and services, including groceries, apparel, and electronics. The company operates a vast network of stores and e-commerce platforms, serving millions of customers worldwide. Walmart competes with other retail giants like Amazon and Target, striving to offer value and convenience to its customers.

On November 19, 2024, Walmart reported impressive third-quarter earnings, with earnings per share (EPS) of $0.58, surpassing the estimated $0.53. The company achieved a revenue of approximately $169.6 billion, exceeding the estimated $167.7 billion. This strong performance led to a 3% surge in Walmart's stock price, reaching a new high of $86.60, as highlighted by Jim Cramer on 'Mad Money'.

A key driver of Walmart's success was the influx of upper-middle-income customers, who contributed to 75% of the company's gains. This shift underscores the growing appeal of Walmart's budget groceries among wealthier consumers. The company's sales increased by 5.5% year over year, or 6.2% at constant currency, reflecting its ability to attract a diverse customer base.

Walmart raised its fiscal 2025 guidance, with an adjusted EPS outlook of $2.42 to $2.47, up from the previous range of $2.35 to $2.43. The company also increased its net sales growth guidance at constant currency to 4.8% to 5.1%. Analysts have adjusted their price targets for Walmart, recognizing the company's strong financial health and positive market reception.

Walmart's financial metrics indicate a solid market valuation, with a price-to-earnings (P/E) ratio of approximately 35.45 and a price-to-sales ratio of about 1.04. The company's enterprise value to sales ratio is around 1.11, and its enterprise value to operating cash flow ratio is approximately 18.91. With a debt-to-equity ratio of 0.70 and a current ratio of 0.85, Walmart demonstrates a balanced approach to leveraging debt and managing working capital efficiently.