BENTONVILLE (dpa-AFX) - Retail giant Walmart Inc. (WMT) reported Thursday a profit for the third quarter that more than doubled from last year, reflecting higher revenues and strength at Walmart U.S. and International. Adjusted earnings per share topped analysts' expectations, while revenues missed it.
The company also raised its adjusted earnings outlook for the full-year 2020. The company's shares are gaining more than 3 percent in pre-market activity.
Consolidated net income attributable to Walmart for the quarter was $3.29 billion or $1.15 per share, sharply higher than $1.71 billion or $0.58 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $1.16 per share, compared to $1.08 per share last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter, comprising net sales and membership and other income, grew 2.5 percent to $127.99 billion from $124.89 billion in the same quarter last year. Revenues grew 3.3 percent to $129.01 billion in constant currency. Analysts were looking for revenues of $128.65 billion for the quarter.
Net sales grew 2.5 percent to $126.98 billion, and Membership and other income increased 1.3 percent to $1.01 billion from last year.
Walmart U.S. comp sales increased 3.2 percent and net sales rose 3.2 percent to $83.2 billion. Walmart U.S. eCommerce sales grew 41 percent, including strong growth in online grocery.
Sam's Club comp sales increased 0.6 percent and ecommerce sales grew 32 percent from last year. Reduced tobacco sales negatively impacted comp sales by 350 basis points.
Net sales at Walmart International grew 1.3 percent to $29.17 billion, and grew 4.8 percent to $30.18 billion in constant currency. The inclusion of Flipkart and strength in Walmex and China were partially offset by softnesss in the U.K.
Looking ahead to fiscal 2020, the company now expects adjusted earnings, including Flipkart, to be up slightly compared to the prior guidance of 'down slightly to up slightly'. Excluding Flipkart, adjusted earnings are expected to increase by a high single-digit percentage range compared to the prior guidance of a 'mid to high single-digit percentage increase.'
The Street is looking for earnings of $4.93 per share for the year.
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