November 12, 2024

Westside People

Complete News World

S&P 500, Nasdaq rise to fully recoup August losses

S&P 500, Nasdaq rise to fully recoup August losses

Walmart shares rose more than 6% and were on track for a record close on Thursday as investors digested an upbeat outlook from the retailer.

Brooke De Palma of Yahoo Finance says in her report:

Walmart now expects sales growth in its fiscal 2025 year to be between 3.75% and 4.75%, with adjusted earnings per share between $2.35 and $2.43. That compares with previous guidance of net sales growth between 3% and 4%, with adjusted earnings per share between $2.23 and $2.37.

In the second quarter, revenue rose 4.8% to $169.34 billion, compared to the $168.46 billion expected. Adjusted earnings also beat estimates at $0.67 per share, up 9.8% year over year.

“Every part of the business is growing,” CEO Doug McMillon said in the statement. “Store and club sales are up, e-commerce is growing as more orders are placed, and delivery is growing faster as our speed improves.”

He added that the company’s online marketplace, membership model and advertising business (which grew 26% globally) helped diversify its earnings.

Same-store sales in the U.S. rose 4.3%, including a 4.2% increase for its namesake business Walmart and a 5.2% rise for Sam’s Club.

Grocery remains a major business, which is the main factor behind the high foot traffic and ticket volumes.

“We know they’re looking for value and their money is tight, and they’re focusing on things that provide value, and they’re choosing carefully when they buy larger items,” CFO John David Rainey told Yahoo Finance.

See also  Vehicle production and delivery numbers Tesla TSLA Q1 2022