The retail giant
WALMART
-2.94%
closure:0
opening:141.79
High:143.29
low:138.28
cycle:—
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Today reporting revenue of $152.8 billion with non-GAAP adjusted earnings per share of $1.5, analysts were expecting revenue of $147.3 billion and earnings of $1.31 per share. The company approved a new plan to repurchase its shares in the amount of 20 billion dollars and is raising the forecasts for the next quarter in view of the strong results. The company now expects an annual decrease of only between 6% and 7% in profit per share, this after the previous forecast was for a decrease of between 9% and 11%.
The company’s revenues from online commerce increased last quarter by 16% compared to the corresponding quarter and the company’s international revenues stood at $25.3 billion, $1.7 billion more than the corresponding quarter when $1.5 billion was lost due to currency fluctuations. Sales in the US increased by 8.2% And the operating profit (Non-GAAP) of the company was 6 billion dollars, an increase of about 4% compared to the corresponding quarter. In the bottom line, the company recorded a net loss of $1.8 billion ($0.66 per share), compared to a profit of $3.1 billion in the corresponding quarter.
The company does see the increase in the hardship of the citizens and the company’s CEO, John David Rainey said that “people have less disposable income to waste on things, so they are looking for value.” One of the important matters in the company’s reports is the state of the inventory. As of the release of the inventory reports increased by 13% in the last year, after the first and second quarters saw increases of 32% and 25% respectively. According to Raini, the company canceled orders and increased its attempt to get rid of the existing inventory. The CEO claimed that 70% of the increase in inventory is attributed to inflation And indeed for the purchase of additional inventory.
“Consumers are certainly leaning on staples retailers to stretch their budgets, and Walmart is well suited to that environment,” UBS analyst Michael Lasser said before the reports were released. Regarding the inventory situation, Citi analyst Paul Lejoise wrote: “The market wants to see continued progress in inventory to feel comfortable with the gross profit forecast in the fourth quarter.” It seems that the company has indeed provided investors with what they want to see and the stock clearly shows the satisfaction.
The company’s stock is now up by more than 6% in the pre-market, after the stock fell by 3% on the last trading day (Friday). In complete contrast to the rest of the market, the company’s stock has lost only 4.3% since the beginning of the year and is expected to move into positive territory after the opening of trading. The price of the stock stood at the close of trading on Friday at $138 representing a market value of $375 billion.
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