Walmart: Raises outlook, shares rising 7% in pre-market
The largest US retailer reported FY23 Q3 (ending 31 October) revenue of $152.8bn up 9% y/y beating estimates and adj. EPS of $1.50 vs est. $1.32 while announcing a $20bn buyback programme. The third quarter result is so strong that Walmart is increasing its FY outlook on adj. EPS to -6% to -7% y/y from previously -9% to -11%. The 12-month trailing revenue figure eclipsed $600bn for the first time in its history. As we have seen throughout this Q3 earnings season, retailers and consumer industries have been able to either preserve or expand operating margin. Walmart is valued at 12-month forward EV/EBITDA of 11.6x compared to 12x for the S&P 500 Index. Other US retailers such as Target, Costco, and Dollar Tree are responding positively in pre-market trading.