Walmart Q1 Results Top Estimates; Provides Rosy Outlook

(RTTNews) - Retail giant Walmart Inc. (WMT) reported Thursday a profit for the first quarter that soared from last year, reflecting higher gross margins and strong growth across all its operating segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

Shares of the retailer are up $3.72 or 6.22 percent to $63.55 in pre-market trading after it provides rosy guidance for the second quarter and the full-year 2025.

For the first quarter, consolidated net income attributable to Walmart for the quarter was $5.10 billion or $0.63 per share, sharply higher than $1.67 billion or $0.21 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.60 per share, compared to $0.49 per share in the year-ago quarter.

On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 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 6.0 percent to $161.51 billion from $152.30 billion in the same quarter last year. Revenues increased 5.8 percent to $161.12 billion in constant currency. Analysts were looking for revenues of $159.50 billion for the quarter.

Net sales grew 5.9 percent to $159.94 billion, and Membership and other income increased 21.0 percent to $1.57 billion from last year. Consolidated U.S. comp sales, without fuel, increased 3.9 percent.

Walmart U.S. comp sales, without fuel, increased 3.8 percent and net sales rose 4.6 percent to $108.67 billion. Walmart U.S. eCommerce sales grew 22 percent and Walmart Connect advertising sales grew 26 percent.

Sam's Club comp sales, without fuel, increased 4.4 percent and net sales also grew 4.6 percent to $21.44 billion from last year. Membership income increased 13.3 percent, with record total membership and Plus penetration. eCommerce sales were up 18 percent.

Net sales at Walmart International grew 12.1 percent to $29.83 billion, with strength in Walmex, Flipkart and China. Net sales also increased 10.7 percent to $29.45 billion in constant currency. eCommerce sales increased 19 percent and Advertising business grew 27 percent.

Global eCommerce sales grew 21 percent, led by storefulfilled pickup & delivery and marketplace, while global advertising business grew 24 percent, including 26 percent for Walmart Connect in the U.S.

Consolidated gross margin rate was up 42 basis points, reflecting improvements across segments, led by Walmart U.S.

Looking ahead to the second quarter, the company now expects adjusted earnings in a range of $0.62 to $0.65 per share, on consolidated constant currency net sales growth of 3.5 to 4.5 percent.

Analysts expect earnings of $0.64 per share on revenues of $167.47 billion for the quarter.

For fiscal 2025, the company continues to project adjusted earnings in a range of $2.23 to $2.37 per share on consolidated constant currency net sales growth of about 3.0 to 4.0 percent, but now both at the high-end or slightly above the guidance range.

The Street is looking for earnings of $2.36 per share on a revenue growth of 3.9 percent to $673.51 billion for the year.

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