While it may be facing an uncertain near-term future with partial economic shutdowns returning, at least for its brick and mortar stores, Walmart’s immediate past was quite impressive with the world’s largest retailer reporting stellar Q3 earnings which surged past estimates as consumers continued to flock to the essential retailer to stock up on stay at-home products and entertainment while the virus rages on.
Walmart beat handily on the top and bottom line:
- Q3 adjusted EPS of $1.34, smashing estimates $1.18 and coming above the highest sellside forecast (range $1.06 to $1.26)
- The adjusted EPS excluded the effects, net of tax, of an unrealized gain of $0.80 on equity investments and $0.34 for the loss of Walmart Argentina
- Q3 revenue $134.71 billion, up 5.2% Y/Y and also beating estimates of $132.42 billion (range $130.52 billion to $135.50 billion)
Curiously, the company did not break out Q3 free cash flow, instead focusing on the solid $16.4BN YTD number, up $9.7BN. What WMT did break out was that it returned $2BN to shareholders in Q3 in the form of dividends ($1.5BN) and buybacks ($0.5BN), down 23.5% Y/Y.