Wal-Mart released its second quarter earnings report before opening bell this morning, posting adjusted earnings of $1.07 per share, beating the consensus of $1.02 per share. The big box retailer reported $120.9 billion in sales, compared to the consensus of $120.2 billion. In last year’s second quarter, the company posted $120.2 billion in revenue.
Wal-Mart’s same store sales beat estimates
Diluted earnings were $1.21 per share with an impact of 3 cents per share from currency headwinds. Same store sales grew 1.6%, beating the consensus of a 1% increase. Neighborhood Market comparable store sales grew 6.5%. Walmart International net sales were $28.6 billion. Excluding currency impacts, international sales increased 2.2% to $31.3 billion. Global e-commerce sales grew 11.8% on a constant currency basis, while global gross merchandise volume increased 13%.
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“We’re pleased with the positive momentum in our business,” said Wal-Mart President and Chief Executive Doug McMillon in a statement. “Our strategy in the U.S. is working as we delivered an eighth consecutive quarter of positive comps, and international also performed well. We remain focused on building e-commerce capabilities globally and executing our omni-channel plan, as evidenced by our recent alliance with JD.com in China and agreement to acquire Jet.com in the U.S.”
Wal-Mart raises full-year outlook
For the third quarter, Wal-Mart expects earnings to be between 90 cents and $1 per share, compared to the consensus of 93 cents per share. The big box retailer expects fiscal 2017 adjusted earnings to come in between $4.15 and $4.35 per share, compared to the consensus of $4.27 per share. The company had previously guided for fiscal 2017 earnings of between $4 and $4.30 per share. Wal-Mart expects GAAP earnings for the full year to be between $4.29 and $4.49 per share, including about 5 cents per share in operating losses and one-time transaction expenses related to the Jet.com acquisition.
The big box retailer repurchased about 30 million shares in the second quarter and has about $12.7 billion left on its $20 billion authorization, which was approved in October 2015.
Shares of Wal-Mart surged by as much as 3.44% to $75.44 in premarket trading this morning.