Walmart (NYSE:WMT) on Tuesday reported first-quarter earnings that surged past Wall Street’s estimates as the company reported strong grocery sales and e-commerce growth and raised its outlook for the year.
The big-box retailer said more shoppers have headed to its stores and website to spend stimulus checks and to get ready to socialize again as COVID cases decline and vaccination rates rise.
E-commerce sales in the U.S. rose by 37% even as consumers returned to more normal activities.
The company raised its outlook for the fiscal year. It expects earnings per share and Walmart U.S.’s operating income to increase in the high single-digits. It reiterated its guidance that Walmart U.S. and Sam’s Club same-store sales will grow in the low single-digits, excluding fuel and tobacco.
In the quarter, Walmart reported net income rose to $2.73 billion, or 97 cents per share, from $3.99 billion, or $1.40 per share, a year earlier. Excluding items, the company earned $1.69 per share. Analysts were expecting Walmart would earn $1.21 per share.
Total revenue grew by nearly 3% to $138.31 billion from $134.62 billion a year earlier, exceeding Wall Street’s expectations of $131.97 billion.
Walmart’s same-store sales in the U.S. grew by 6%, higher than the 0.9% increase expected by analysts. The company said those sales got a lift from grocery sales, as it gained market share. Transactions declined by 3.2%, but average ticket growth increased by 9.5%.
WMT shares flew $5.22, or 3.8%, early Tuesday, to $144.14.
