Walmart Gains On Q3 Beat, Raised FY23 Outlook; Agrees To $3.1B Opioid Settlement Framework

  • Walmart Inc WMT reported third-quarter FY23 sales growth of 8.7% year-on-year to $152.81 billion, beating the consensus of $147.51 billion.
  • Net sales from Walmart U.S. increased 8.5% Y/Y, Walmart International rose 7.1%, and Sam's club jumped 12.8%.
  • Excluding fuel, Walmart's U.S. Q3 comp sales grew 8.2% and 17.4% on a two-year stack. eCommerce growth was 16% and 24% on a two-year stack.
  • Global advertising business grew over 30%, led by 40% at Walmart Connect in the U.S. and strength in Flipkart Ads.
  • The operating margin was 1.8%, and operating income for the quarter fell 53.5% to $2.7 billion.
  • The company held $11.6 billion in cash and equivalents as of October 31, 2022.
  • Cash provided by operating activities totaled $15.7 billion year-to-date, with a free cash flow of $3.6 billion.
  • Adjusted EPS was $1.50, beating the consensus of $1.32.
  • Inventories as of October 31, 2022, were $64.7 billion.
  • Subsequent to the third quarter, the company approved a new $20 billion share repurchase authorization replacing its existing authorization, which had approximately $1.9 billion remaining at the end of Q3. 
  • Outlook: Walmart sees a Q4 FY23 adjusted EPS decline of 3% - 5%. Q4 net sales growth of 3%, negatively affected by about $1.3 billion from currency fluctuations.
  • For FY23, the company currently expects Adjusted EPS to decline 6.0% - 7.0% (prior view decline 9.0%-11.0%). Excluding divestitures, adjusted EPS decline of 5.0%-6.0% (previous view decline 8.0%-10.0%).
  • It expects FY23 consolidated net sales growth to be about 5.5% (prior view 4.5%). WMT sees U.S. comp sales growth, excluding fuel, of 5.5% (prior view 4%). 
  • Opioid Settlement Framework: Walmart also agreed to a $3.1 billion nationwide opioid settlement framework designed to resolve substantially all opioid lawsuits and potential lawsuits by state, local, and tribal governments, if all conditions are satisfied.
  • Price Action: WMT shares are trading higher by 7.16% at $148.30 in premarket on the last check Tuesday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!