Walmart (WLMT) has reported third-quarter quarterly earnings that beat Wall Street’s expectations. The company’s management has raised its forward guidance for the next quarter and also for 2023. Walmart in Q3 delivered strong revenue growth of 8.7% with strength across segments. The Walmart U.S. Segment grew composite sales by 8.2%, with unit growth in food, and eCommerce up 16%.

The company has also announced a new buy-back exercise by approving a $20 billion share repurchase authorization replacing its existing authorization, which had approximately $1.9 billion remaining at the end of Q3.

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The company delivered strong revenue growth globally, with strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex. Total revenue was $152.8 billion, up 8.7%, or 9.8% in constant currency. The Consolidated gross profit rate declined 89 basis points, primarily due to markdowns and a mix of sales in the U.S., an inflation-related LIFO charge at Sam’s Club, and the timing of Flipkart’s annual event, TheBigBillion Days. Consolidated operating income was $2.7 billion, a decrease of 53.5%, including the legal charges. Adjusted operating income was $6.0 billion, an increase of 3.9%.

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The guidance for Q4 is a Consolidated net sales growth of about 3.0%, negatively affected by approximately $1.3 billion from currency fluctuations. Walmart U.S. comp sales, excluding fuel, are expected to be about 3.0%. Consolidated operating income increase 1.0% to decline 1.0% while Adjusted earnings per share are expected to decline by 3.0% to 5.0%

The guidance for Fiscal Year 2023

  • Consolidated net sales growth of about 5.5%. Excluding divestitures, consolidated net sales growth of about 6.5%. Based on current exchange rates, the company expects a headwind of about $4.1 billion for the year.
  • Walmart U.S. Comp sales growth, excluding fuel, of about 5.5%.
  • Consolidated adjusted operating income decline of 6.5% to 7.5%, which improved from the company’s prior guidance of a decline of 9.0% to 11.0% and reflects better performance in the third quarter. Excluding divestitures, consolidated adjusted operating income decline of 5.5% to 6.5%.
  • Adjusted earnings per share decline of 6.0% to 7.0%. Excluding divestitures, adjusted earnings per share decline of 5.0% to 6.0%.