Walmart Jumps After Smashing Expectations As Average Ticket Soars 24%

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.

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