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Walmart Q1 Profit Beats View, But Revenues Miss

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Retail giant Walmart Inc. (WMT) on Thursday reported an 80 percent surge in profit for the first quarter from last year, reflecting higher revenues and a gain on the company's equity investment in JD.com.

Excluding items, adjusted earnings per share for the quarter beat analysts' expectations, while revenues missed their estimates. The company's shares are gaining more than 1 percent in pre-market activity.

For the first quarter, consolidated net income attributable to Walmart rose to $3.84 billion or $1.33 per share from $2.13 billion or $0.72 per share in the same period last year.

The latest quarter's results include an unrealized gain, net of tax, of $0.20 per share on the company's equity investment in JD.com.

Excluding items, adjusted earnings for the quarter were $1.13 per share, compared to $1.14 per share in the year-ago period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and Membership and other income, grew 1.0 percent to $123.93 billion from $122.69 billion in the year-ago period. Excluding currency, total revenue increased 2.5 percent. Analysts were looking for revenues of $124.98 billion for the quarter.

Net sales grew 1.1 percent to $122.95 billion, while Membership and other income declined 7.9 percent to $976 million.

Walmart U.S. comp sales increased 3.4 percent, marking the best first-quarter comp in nine years and the fourth consecutive quarter above 3 percent. Net sales rose 3.3 percent to $80.3 billion. Walmart U.S. eCommerce sales grew 37 percent.

Sam's Club comp sales increased 0.3 percent. Reduced tobacco sales negatively impacted comp sales by about 270 basis points.

Meanwhile, net sales at Walmart International declined 4.9 percent to $28.8 billion.

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