BUSINESS
Walmart Inc. experienced a significant stock surge on Thursday, reaching an all-time high of approximately $74.50 in premarket trading, a remarkable increase of over 8%. This rise follows the company’s impressive earnings results, which have instilled optimism among investors in light of the current fluctuating U.S. economy. The previous record was set just last month at $71.33.
**Key Earnings Highlights:**
- **Revenue:** For the quarter ending July 31, Walmart reported revenues of $169.3 billion, surpassing analyst expectations of $168.6 billion.
- **Earnings Per Share (EPS):** The company achieved an EPS of $0.67, beating the forecast of $0.65.
- **Outlook:** Walmart has increased its full-year sales growth forecast from 3%-4% to a new range of 3.75%-4.75%, with anticipated earnings growth of 6%-9%.
CFO John David Rainey reassured investors about consumer health, stating, “we have not seen any incremental fraying,” which is particularly encouraging amid concerns of a possible economic slowdown.
The positive performance of Walmart’s stock also buoyed the broader market, with the Dow Jones Industrial Average and S&P 500 futures rising by 0.7%, poised for their highest opening in two weeks.
**Market Insights:**
DA Davidson analyst Michael Baker emphasized a notable shift in consumer spending habits, stating, “The only place anyone is shopping right now is Amazon, Walmart, and Costco.” This trend has adversely impacted retailers focused on discretionary items, with major brands like Lululemon and Nike suffering stock declines of over 25% this year.
As trading opens at 9:30 a.m. EDT, Walmart is expected to add nearly $50 billion to its market capitalization, which is approximately three-fourths of the total market value of rival Target.
For more updates on Walmart’s performance and its implications for the retail sector, stay tuned to Star News.
**Key Earnings Highlights:**
- **Revenue:** For the quarter ending July 31, Walmart reported revenues of $169.3 billion, surpassing analyst expectations of $168.6 billion.
- **Earnings Per Share (EPS):** The company achieved an EPS of $0.67, beating the forecast of $0.65.
- **Outlook:** Walmart has increased its full-year sales growth forecast from 3%-4% to a new range of 3.75%-4.75%, with anticipated earnings growth of 6%-9%.
CFO John David Rainey reassured investors about consumer health, stating, “we have not seen any incremental fraying,” which is particularly encouraging amid concerns of a possible economic slowdown.
The positive performance of Walmart’s stock also buoyed the broader market, with the Dow Jones Industrial Average and S&P 500 futures rising by 0.7%, poised for their highest opening in two weeks.
**Market Insights:**
DA Davidson analyst Michael Baker emphasized a notable shift in consumer spending habits, stating, “The only place anyone is shopping right now is Amazon, Walmart, and Costco.” This trend has adversely impacted retailers focused on discretionary items, with major brands like Lululemon and Nike suffering stock declines of over 25% this year.
As trading opens at 9:30 a.m. EDT, Walmart is expected to add nearly $50 billion to its market capitalization, which is approximately three-fourths of the total market value of rival Target.
For more updates on Walmart’s performance and its implications for the retail sector, stay tuned to Star News.
Advertisement
