Topline
Walmart stock rallied to a record high Thursday as the U.S.’ largest physical retailer’s latest earnings report impressed Wall Street, and left reason for optimism as the U.S. economy deals with teetering public perception.
Walmart stock is set for its best day in more than four years.
Key Facts
Shares of Walmart rose more than 8% to about $74.50 in premarket trading, well above the prior all-time high of $71.33 achieved last month and pacing toward its best day since March 2020.
The rally came after the firm reported results for the three-month period ending July 31, which beat forecasts for revenue ($169.3 billion sales vs. analyst estimates of $168.6 billion) and profit ($0.67 earnings per share vs. estimates of $0.65).
Those were record marks for Walmart’s top and bottom lines, and the company indicated it expects the good times to continue, upping its outlook for full-year sales growth from a range of 3% to 4% to 3.75% to 4.75% and guiding for earnings growth of 6% to 9%.
Walmart has not “seen any incremental fraying of consumer health,” the company’s chief financial officer John David Rainey told the Wall Street Journal, a positive signal for the broader economy as fears percolated in recent weeks about a potential economic slowdown.
Walmart stock’s surge boosted the broader market, with Dow Jones Industrial Average and S&P 500 futures up almost 1% apiece, set to open at their highest in two weeks.
Crucial Quote
“The only place anyone is shopping right now is Amazon, Walmart and Costco,” DA Davidson analyst Michael Baker told CNN, adding “value has become more important” to consumers. That assertion helps explain the continued slump for retail stocks tied to companies offering more discretionary products, with shares of athletic wear giants Lululemon and Nike down more than 25% apiece year-to-date.
Big Number
Almost $50 billion. That’s how much market capitalization Walmart is set to add when trading opens at 9:30 a.m. EDT, about three-fourths of the total market value of rival Target.
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