Retail behemoth Walmart Inc WMT reported Tuesday morning with such a strong second-quarter earnings beat that it even shocked a former top Bentonville executive.
Walmart Q2 Recap: Walmart said it earned $1.56 per share in the second quarter on revenue of $137.74 billion versus expectations of $1.25 per share and revenue of $135.48 billion.
Same-store sales were 9.3% higher in the quarter, and this was nearly twice as much as the 5.4% gain analysts were modeling.
Walmart's U.S. e-commerce sales were up by 97% for the second quarter, up from 74% growth in the first quarter.
Beyond Expectations: Walmart reported a "phenomenal quarter" that was above and beyond what ex-Walmart U.S. CEO Bill Simon would have thought possible, he said on CNBC's "Squawk Box."
Most notably, the former Walmart exec said operating income grew 9% in the quarter despite heavy investments in shifting the business online.
The strong performance wouldn't be possible without an excellent management team led by CEO Doug McMillon and CFO Brett Biggs, who is "one of the best" in the country, Simon said.
Amazon Is Paying Attention: Walmart's online business is running hot as the company integrates the digital component with its physical store base, Charlie O'Shea, retail analyst at Moody's, also said on "Squawk Box."
Retail rival Amazon.com, Inc. AMZN is paying attention and now has to be asking how it can compete with Walmart, rather than the other way around, he said.
WMT Price Action: Walmart shares were down 1.2% at $133.97 at last check Tuesday.
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Photo courtesy of Walmart.
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