Walmart Stock Surges After Releasing Second-Quarter Earnings
Aug 16, 2022 By MarketDepth
Walmart (WMT:NYQ) releases second-quarter earnings and beats analyst expectations. The retailer reported adjusted earnings per share of $1.77 versus the $1.62 expected. Total revenue was $152.9 billion compared to $150.81 billion.
Walmart stock is up 6% intraday on the positive news.
Walmart sees an uptick in sales as inflation soars and consumers look for the best deals. Inflation hit a 40-year high in June at 9.1% and slightly down to 8.5% for July.
“An environment of higher food prices, fewer stimulus dollars, and increased pressure on certain consumer cohorts should theoretically drive more traffic to Walmart stores. The margin implications are less advantageous as this same situation would also be expected to hurt the discretionary part of the assortment.”
President and founder of Quo Vadis Capital, Inc. John Zolidis
Fiscal 2023 outlook earnings per share are looking to come down slightly by 9-11%. These are due to higher fuel costs, increased inventory and higher labour costs.
