Walmart Just Delivered Uncharacteristically Strong Quarterly Sales and Earnings Numbers

In Q1 2023, Walmart (WMT) reported consolidated sales of $152.3 billion, up 7.6% on an annual basis, with comparable sales at Walmart U.S. up 7.4% and sales of e-commerce delivery options up a whopping 26%. The headline figure topped the consensus estimate at $4.39 billion.

The company’s management noted that the retailer “gained grocery market share, including share among high-income households,” during the quarter. The three-month period also marks the largest quarterly membership enrollment on record for its loyalty program called Sam's Club America.

Meanwhile, adjusted earnings per share of $1.47 for the quarter also topped the Wall Street consensus estimate of $1.32 as the company focused on improving margins and inventory levels. U.S. inventories fell 9% year-over-year, but were roughly flat globally.

The Arkansas-based retail giant notably raised its FY forecast while announcing it during the conference call, as annual sales growth by nearly 8% clearly represented an outstanding achievement for any established retail chain in any country. The management sounded particularly upbeat about the fact that large grocery business helped offset weaker sales of clothing and electronics.

We clearly see that WMT has good chance to face numerous price target upgrades during the next few days, which may result in strengthening of the company’s shares rally.