3 Reasons Walmart Crushed Q2 Earnings
Walmart (NYSE: WMT) delivered another blowout earnings report Tuesday morning.
Investors responded to the numbers with a shrug, sending the stock down modestly on the news on fears about a slowdown in the third quarter, but the results were undeniably strong. U.S. comparable sales jumped 9.3%, driven by 97% e-commerce growth. Overall revenue rose 5.6% to $137.7 billion, topping estimates of $135.5 billion, and adjusted earnings per share surged from 23% to $1.56, easily beating expectations of $1.25. The increase in profits came as gross margin improved, e-commerce losses narrowed, and the company overcame an additional $1.3 billion in incremental spending.
The COVID-19 pandemic was a tailwind for much of the business during the quarter as more consumers relied on Walmart for food, cleaning supplies, and general merchandise for home maintenance and improvement. However, there were three areas in particular that stuck out as key drivers of the strong second-quarter results.
Source Fool.com
