Walmart Q1 earnings beat forecasts; revenues hit by currency effect

Walmart Q1 earnings beat forecasts; revenues hit by currency effect

Mubasher: Walmart posted earnings that came well above analysts’ forecasts in the first quarter of 2019, whereas its revenues came up short, as international sales declined year-on-year as currency fluctuations weighed on its business overseas.

Net income attributable to the US retailer came in at $3.84 billion in the period between February and April, surging 71.6% from $2.13 billion in the comparable period last year.

Adjusted earnings per share (EPS) were $1.13 in Q1-19, falling short of forecasts for $1.02.

Walmart generated $123.92 billion in total revenues during the three-month period ended last April, compared to $122.69 billion in the same period last year and $125.03 billion expected by analysts.

Net sales rose by 1.1% year-on-year to $122.94 billion in Q1-19, as a 3.3% sales growth in the US and 1.5% sales increase from the grocery giant’s Sam's Club outlets somehow made up for a 4.9% sales plunge across its international stores.

E-commerce sales jumped by 37%, reflecting solid growth in online growth as well as items on Walmart.com.

Walmart has been investing funds into new technology that supports its ability to fulfil online orders, expand its huge grocery business, and stock shelves with merchandise.

“We’re continuing our transformation to become more of a digital enterprise,” Walmart’s CEO Doug McMillon.

Walmart, the world’s biggest retailer, has been also on an acquisition spree to boost its e-commerce business.