Wal-Mart Stores (WMT) Stock: Gaining Big On Earnings

Wal-Mart Stores Inc (NYSE: WMT) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced its earnings for the third quarter, blowing away expectations and causing excitement among investors. Today, we’ll talk about what we saw from earnings, how the stock is reacting to the news, and what we’ll be watching for ahead.

What We Saw From WMT Earnings

As mentioned above, Wal-Mart Stores is having an incredibly strong start to the trading session in the pre-market hours this morning after the company released its financial results for the third quarter. Of course, the results were overwhelmingly positive. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, WMT did overwhelmingly well. During the quarter, analysts expected that the company would generate earnings in the amount of $0.97 per share. However, the company actually reported earnings in the amount of $1.00 per share, beating expectations.
  • Revenue – Revenue also proved to be a positive notch on the belt for the company. During the quarter, analysts expected that WMT would generate revenue in the amount of $121.04 billion. However, the company actually produced revenue in the amount of $123.18 billion, once again beating expectations.
  • Sales – In terms of eCommerce sales, Wal-Mart did great yet again. During the quarter, the company saw a 50% increase in eCommerce sales. On the same store sales side, more good news was released. While analysts expected that same store sales would increase by 1.9%, the company actually announced an increase in same store sales in the amount of 2.7%.
  • Guidance – Finally, based on the strong quarter, WMT increased its guidance for the fiscal 2018 year. During the year, the company expects to produce earnings in the range between $4.38 per share and $4.46 per share. That’s up from between $4.30 per share and $4.40 per share.

How The Stock Is Reacting To The News

As investors, we’ve come to expect that when earnings expectations are beat, we can expect to see gains in the stock. That’s exactly what we’re seeing this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:16), WMT is trading at $93.86 per share after a gain of $4.03 per share or 4.49% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on WMT. In particular, we’ll continue to follow the growth in eCommerce and same-store sales. We’re also interested in seeing if Wal-Mart does indeed meet the high expectations for fiscal 2018 that it has set for itself. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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