Walmart Inc (NYSE:WMT, ETR:WMT) posted strong Q2 results and raised its outlook, highlighting its resilience and appeal to value-seeking consumers in a challenging economic environment.
The retailer reported a 4.8% rise in revenues to $169.3 billion in the second quarter of 2024, driven by increased e-commerce and advertising sales, as consumers sought value amid economic uncertainty.
That prompted Walmart to raise its full-year outlook, with expectations of net sales rising by up to 4.75%.
Despite a 43% drop in profits due to last year's unusual share price gains, Walmart's core business showed strength, with operating income up 8.5%.
Analysts at Jefferies noted potential upside ahead as traffic remains strong and eCommerce losses improve.
“(We) expect automation tech & AI to continue to play integral roles,” they wrote.
“WMT's strength continues, and with this improved consistency, as well as scaling of higher-margin revenue streams, we believe a higher multiple is warranted.”
Walmart’s shares were up 6.5% in Thursday morning trading.