The Strategist

Walmart and Home Depot report better-than-forecast quarter

11/17/2022 - 02:46

Walmart, a retail chain and the biggest retailer in the world, reported third-quarter total revenues of $152.8 billion, an 8.7% increase over the same period last year.

Comparable sales at Walmart's U.S. locations alone increased by 8.2%, above analysts' expectations of growth of only 3.5%. Walmart's overseas sales reached $25.3 billion, a 7.1% increase from the prior year.

The third quarter was very profitable for the company, according to Walmart CEO Doug McMillon, in part because of strong results in the food and foreign operations sectors. Due to these outcomes, the business was able to make forecasts for the forthcoming pre-holiday sales season, which typically starts in the United States after Thanksgiving and this year falls on November 24.

Another significant American retailer, Home Depot, which dominates the home furnishings, renovation, and home improvement markets, recently released third-quarter financial results. Its net income grew by 5.1% to $4.34 billion, or $4.24 per share.

That was more than the $4.11 per share consensus estimate of the analysts surveyed by Zacks Investment Research. The total revenue for Home Depot increased 5.6% to $38.87 billion, above expectations. After the company's quarterly profits were announced, shares of Home Depot increased by 2.5 percent.