Walmart posts best sales in a decade; WMT at $100 per share

Chris L
Category:  Financial News
Walmart reported a strong earnings report for the second quarter, including its best sales in a decade and offering bullish guidance for the next quarters. WMT share is up 10% so far on the day. 

Walmart reported a second-quarter EPS of $1.29, improving market expectations by $0.07. The company announced revenues of $128 billion, an increase of $4.7 billion, or 3.8% in the last twelve months and a beat from expectations by $2.03 billion. 

US comparable sales increased 4.5%, "the strongest growth in more than ten years led by the performance of grocery, apparel and seasonal," said the official report. "Strong comp sales were supported by traffic and ticket growth as each exceeded 2.0%."

TD Ameritrade Chief Market Strategist JJ Kinahan affirmed in a recent report that "the company also looked very impressive in raising earnings guidance for the full fiscal year to between $4.90 and $5.05, from previous guidance of $4.75 to $5."

Walmart raised its guidance for FY'19 adjusted EPS to $4.90 to $5.05, ex. Flipkart. Also, FY'19 GAAP EPS to $2.90 to $3.05, ex. Flipkart, was updated. 

According to Walmart CEO Doug McMillon, the company is aggressively rolling out grocery pickup and delivery in the US and expanding omni-channel initiatives in Mexico and China.

"Customers tell us that they feel better about the current health of the U.S. economy as well as their personal finances," McMillon told investors. "They're more confident about their employment opportunities."

Long story short, "Walmart US Q2 comps grew 4.5% and Walmart US eCommerce sales grew 40%, Q2 GAAP net loss per share of $0.29; Adjusted EPS of $1.29."

Walmart knocks the 100.00 price door

The share of Walmart jumped around 10 dollars on Thursday as investors welcomed its better-than-expected corporate earnings and speculations over US-China trade talks. 

Walmart is currently trading 10.21% positive on the day at 99.40, after the pair traded as high as 100.21 earlier in the morning. More important is the technical break above the 200-day moving average at 91.31. 

The 200-day moving average was containing the WMT share since its break to the downside on March 2018. To the upside, immediate resistance lies at 100.00, followed by 101.00 and 104.50. 
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