Walmart Q1 FY 2022 Earnings Report Recap

WMT beat on earnings and on revenue

Key Takeaways

  • U.S. Walmart comparable store sales growth smashed analyst expectations.
  • U.S. Walmart comparable store sales indicate the sales generated by Walmart's U.S. stores that have been open for at least one year.
  • E-commerce sales for U.S. Walmart stores rose 37% year over year even as shoppers began returning to stores.
Walmart Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Beat $1.69 $1.20
Revenue Beat $138.3B $131.5B
U.S. Walmart Comparable Store Sales Growth Beat 6.0% 0.8%

Source: Predictions based on analysts' consensus from Visible Alpha

Walmart (WMT) Financial Results: Analysis

Walmart Inc. (WMT) reported Q1 FY 2022 earnings that dramatically exceeded analysts' expectations. Adjusted earnings per share (EPS) beat analyst forecasts, rising 43.2% year over year (YOY). Revenue came in above analyst estimates, rising 2.7% YOY instead of the 2.3% decline that was expected. Comparable store sales growth for U.S. Walmart-branded stores also exceeded analyst estimates by a wide margin. The company's shares were up more than 3% in pre-market trading. Over the past year, Walmart's shares have provided a total return of 10.5%, well above the S&P 500's total return of 40.9%.

U.S. Walmart Comparable Store Sales

U.S. Walmart comparable store sales rose 6.0% YOY, boosted by share gains in grocery revenue. The metric encompasses revenue generated by Walmart's U.S. stores that have been open during the previous 12 months. Comparable store sales growth gauges a company's ability to generate additional revenue from established stores. If the bulk of a company's sales are being generated by established stores as opposed to new ones, this is a good sign that the company's products have not yet saturated the local market.

Comparable store sales also includes Walmart's e-commerce sales, which were up 37% from the year-ago quarter for its U.S.-based Walmart stores. The company said that e-commerce posted strong results across all channels and that sales have more than doubled over the past two years. Walmart's e-commerce sales have been boosted by shoppers choosing to shelter at home during the COVID-19 pandemic. But even as more consumers begin to return to stores amid the subsiding health risks, Walmart is managing to continue posting strong e-commerce sales growth.

WMT FY 2022 Outlook

Walmart provided some general forward guidance for the rest of FY 2022. The company expects consolidated net sales to decline from the previous year. However, those sales are expected to grow after excluding certain divestitures. U.S. Walmart comparable store sales are expected to be flat for the year. The company expects EPS to rise.

Walmart's next earnings report (for Q2 FY 2022) is estimated to be released on Aug. 17, 2021.

Article Sources
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  1. Visible Alpha. "Financial Data."

  2. Walmart Inc. "Q1 FY22 Earnings Release," Page 1.

  3. TradingView. "Price Chart: WMT and S&P 500."

  4. Walmart Inc. "Form 10-K for the fiscal year ended January 31, 2021," Page 33.

  5. Walmart Inc. "Q1 FY22 Earnings Release," Page 3.

  6. Yahoo! Finance. "Earnings Calendar: WMT."

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