Walmart lifts full-year sales and profit forecast, shares rally
The retail bellwether now expects annual consolidated net sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth. It also expects adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 and $2.37, it said on Thursday.
U.S. retail giant Walmart raised its fiscal 2025 sales and profit forecast on Thursday, betting on easing inflation to further boost demand for essentials and bring a rebound in sales of discretionary products like electronics.
Shares of the Bentonville, Arkansas-based company were up 6%in premarket trading. The retail bellwether now expects annual consolidated net sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth.
It also expects adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 and $2.37, it said on Thursday. Total U.S. comparable sales rose 3.9%, excluding fuel, in the first quarter ended April 30, helped by a similar rise in the number of average transactions. Volume sales also grew in the quarter, Walmart said. Analysts on average were expecting U.S. comparable sales growth of 3.15%.
The stock's surge has boosted its valuation past 25 times expected earnings, up from a 10-year average valuation of about 20, suggesting strong growth in coming quarters, according to LSEG data.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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