Key Takeaways

  • U.S. comparable sales, excluding fuel, rose at a faster pace than analysts expected.
  • U.S. comparable sales indicate the sales generated by the company's U.S. stores and clubs that have been open for at least one year, including e-commerce sales.
  • Walmart expects U.S. comparable sales, excluding fuel, to rise between 6% and 7% year over year in Q3 FY 2022.
Walmart Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Beat $1.78 $1.55
Revenue Beat $141.0B $137.1B
U.S. Comparable Sales Growth, excluding fuel Beat 5.5% 3.0%

Source: Predictions based on analysts' consensus from Visible Alpha

Walmart (WMT) Financial Results: Analysis

Walmart Inc. (WMT) reported Q2 FY 2022 earnings that beat analysts' expectations. Adjusted earnings per share (EPS) surpassed consensus estimates, rising 14.1% year over year (YOY) instead of the slight decline expected by analysts. Walmart's revenue came in above analyst forecasts, up 2.4% YOY instead of the 0.5% YOY decline that was expected. Comparable store sales growth for the company's U.S.-based stores and clubs also exceeded analyst estimates. The company's shares were down about 1.5% in pre-market trading. Over the past year, Walmart's shares have provided a total return of 12.9%, well below the S&P 500's total return of 32.5%.

WMT U.S. Comparable Sales Growth

Walmart's U.S. comparable sales, excluding fuel sales, grew 5.5% YOY, marking a deceleration from the first quarter of FY 2022 as well as the year-ago quarter. The metric encompasses revenue generated by Walmart's U.S. stores and clubs that have been open during the previous 12 months. It includes sales from the company's remodels, relocations, expansions, and conversions, as well as e-commerce sales.

Comparable 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.

Walmart said that its U.S.-based, Walmart-branded stores gained market share during the quarter, with comparable store transactions up 6.1%. Its U.S. Walmart stores also grew e-commerce sales by 6%.

WMT Outlook

Walmart expects its U.S. comparable sales, excluding fuel, to grow between 6% and 7% in the third quarter. It expects EPS of between $1.30 and $1.40. For full-year FY 2022, the company expects EPS of between $6.20 and $6.35.

Walmart's next earnings report (for Q3 FY 2022) is estimated to be released on Nov. 16, 2021.