Walmart’s Stock Up By Less Than 1% Despite Strong Earnings

The shares of Walmart are up by less than 1% today despite the company reporting strong earnings in the previous quarter.

Walmart Reports Strong Quarterly Earnings Thanks High Grocery Sales

Walmart, the leading retailer in the United States, reported its second-quarter earnings earlier today. The company performed better than expected, thanks to a surge in grocery sales and other areas.

According to the company’s Q2 report, the adjusted earnings per share for the previous quarter was $1.78, surpassing the $1.57 estimated by Wall Street analysts. The revenue of $141.05 billion is also higher than the $137.17 billion predicted by the market analysts.

During an interview with CNBC earlier today, Chief Financial Officer Brett Biggs stated that the strong performance by the company was due to the high demand for items like luggage, party supplies and apparel. This is due to many people coming out of lockdown and resuming their daily activities. Also, students were resuming school for the first time in more than a year and were shopping for school supplies.

The CFO added that Walmart continues to monitor the Delta variant of the Coronavirus, but so far, they haven’t witnessed any changes in customers’ shopping patterns. Walmart CEO Doug McMillon said the company had recorded a massive increase in grocery sales, one of its core businesses.

Furthermore, the CEO added that it is making progress with its online store, with thousands of new shoppers visiting its third-party marketplace in the past quarter.

Walmart’s Stock Up By Nearly 1%

The shares of Walmart are up by roughly 1% despite the company recording massive sales in the previous quarter. At the time of this writing, WMT is trading at $152 per share, up by 0.97% over the past few hours.

The company said its same-store sales in the United States surged by 5.2%, which is more impressive than the 3.3% analysts had predicted. However, it is lower than the 9.3% it recorded in the previous quarter.

Amazon remains the leading e-commerce platform in the United States. Walmart’s e-commerce sales grew by only 6% in the previous quarter, significantly by 97% from the same quarter last year.