- Social Hub
- Offering
- Resources
- Company
- Partnerships
- Home
- Markets Updates
- Walmart Q2 Earning Report: The Retailer's Results Surpassed Analysts' Expectations
Walmart Q2 Earning Report: The Retailer's Results Surpassed Analysts' Expectations
18 August 2022
Walmart on Tuesday said sales grew 📈 more than 8%, but profits tightened in the fiscal Q2, as consumers turned to the discounter for groceries and essentials. It was a pleasant surprise because the profit far exceeded analysts’ forecasts. Immediately after the release of the Q2 2022 earnings report, shares of the company rose about 5% to close the day at $139.37 💰
Here’s what Walmart reported for its second quarter 👇
- Earnings per share (EPS): $1.77 adjusted vs. $1.62 expected
- Revenue: $152.86 billion reported vs. $150.81 billion expected
Walmart topped analysts’ expectations for earnings and revenue in the 2Q
Walmart reported mixed results for Q2 FY 2023, ended 📅 July 31, 2022. The company’s adjusted earnings per share (EPS) beat consensus estimates, falling marginally year-over-year (YOY). Adjusted EPS was positively affected by an insurance settlement for Walmart Chile and a dividend related to the company’s investment in JD Inc. Walmart’s revenue also came in above analyst forecasts, rising 📈 8.4% YOY.
Comparable store sales growth for the company’s U.S.-based stores and clubs also beat analyst estimates.
Walmart Chief Financial Officer (CFO) John David Rainey said that inflation was partly fueling sales growth, including among middle- and high-income shoppers attracted to Walmart for its reputation as a discount retailer.
In addition, the giant retailer had a significant increase in comparable sales 🛍 (more than 7% year-over-year).
Comparable sales growth gauges a company’s ability to generate additional revenue from established stores. If the bulk of a company’s sales is being generated by established stores as opposed to new ones, this is a good sign that the company’s products have not yet saturated the local market 🛒
What Walmart predicts for the next quarter
Walmart said it expects adjusted EPS to decline by 9.0 to 11.0% YOY for Q3 FY 2023. U.S. comparable sales excluding fuel are expected to grow by about 3.0%.
The company said it maintained its prior outlook for H2 FY 2023, including 3.0% YOY growth for U.S. comparable sales growth for that period as well.
What to expect from Walmart shareholders
Walmart daily stock chart, August 18, 2022.
Inflation and shrinking 🇺🇸 U.S. household incomes are encouraging shoppers to shop more with discounts, and to stock up now before possible price increases. Walmart has been virtually unaffected by consumer inflation because the retailer offers customers low retail prices. Because of this, many customers of more premium retailers are switching to Walmart to make inventory.
📌 Based on the company’s current outlook for the next quarter, we can expect further positive investor reaction to the giant’s performance.
Summary
- Walmart topped analysts’ expectations for earnings and revenue in the fiscal second quarter.
- The company said it maintained its prior outlook for H2 FY 2023, including 3.0% YOY growth for U.S. comparable sales growth for that period as well.
- Immediately after the release of the Q2 2022 earnings report, shares of the company rose about 5% to close the day at $139.37.
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Related articles
NAGA Weekly Recap May 5 - 9, 2025
9 May 2025
Markets saw a boost from strong job data this week, easing recession fears, but inflation concerns and the upcoming Fed decision kept optimism in check. Explore the latest market trends, commodity movements, and the key factors shaping next week’s outlook.
Read more
Gladys Eguia
Need Help? Visit our Help Section
Download NAGA Trader
Markets
Platforms
Pricing & Terms
Company
Documentation
Partnerships
Help & Support
Social Hub
Free Education
News & Analysis
Download NAGA Trader
Copyright © 2024 – All rights reserved.
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.
The website is operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of Suite 3, Jivan’s Complex, Global Village, Mont Fleuri, Mahe, Seychelles. Tel: +248 4373121
Partner Companies: NAGA Markets Europe Ltd, authorised and regulated by the Cyprus Securities and Exchange Commission ("CySEC") under license No. 204/13 with registered address at Agias Zonis 11, Limassol, 3027, Cyprus and NAGA Global (CY) Ltd, with registered address at Nikokreontos 2, NICE DREAM, 6th floor, Flat/Office 601, 1066, Nicosia, Cyprus.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
Restricted countries: NAGA Capital Ltd does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Anguilla, Australia, Austria, Barbados, Belarus, Belgium, Bermuda, British Indian Ocean Territory, Bulgaria, Burkina Faso, Canada, Cayman Islands, Central African Republic, Christmas Island, Cocos (Keeling) Islands, The Democratic Republic of the Congo, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Falkland Islands (Malvinas), Finland, France, Germany, Gibraltar, Greece, Guam, Haiti, Heard Island and McDonald Islands, Hungary, Iceland, Islamic Republic of Iran, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Democratic People's Republic of Korea, Latvia, Libyan Arab Jamahiriya, Liechtenstein, Lithuania, Luxembourg, Mali, Malta, Montserrat, Mozambique, Myanmar, Netherlands, New Zealand, Norfolk Island, Norway, Palestinian Territory, Occupied, Pitcairn, Poland, Portugal, Romania, Russian Federation, Saint Helena, Ascension and Tristan Da Cunha, San Marino, Senegal, Serbia, Slovakia, Slovenia, Somalia, South Georgia and the South Sandwich Islands, South Sudan, Spain, Sri Lanka, Sweden, Switzerland, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turks and Caicos Islands, Uganda, Ukraine, United Kingdom and any other countries where the citizens have British proof of identity (i.e. British Virgin Island, Gibraltar, Isle of Man etc.), United States, U.S. Minor Islands, Vanuatu, Virgin Islands, British, Virgin Islands, U.S., Yemen, and Zimbabwe.