Walmart beats Wall Street estimates, hikes sales forecast

Walmart reported earnings and sales results Thursday that beat Wall Street estimates, showing American consumers are flocking to the company’s stores.

The retailer reported $179.5 billion in sales, more than the $177.4 billion the Street was penciling in. Its comparable-store sales growth came in at 4.2%, compared to the 4% growth analysts had anticipated.

It also raised its full-year sales forecast: it now expects sales to grow up to 5.1%, compared to its previous ceiling of 4.75%.

Walmart reported adjusted earnings per share of $0.62, slightly better than the $0.60 analysts expected.

Walmart rose about 3% in premarket trading after initially dipping when the report was released. The stock is up more than 11% since the start of the year, as of yesterday’s close.

The retail giant announced last week that its longtime CEO, Doug McMillon, who helped the company beef up its e-commerce segment against Amazon, will be stepping down. Walmart’s e-commerce sales grew 27% year over year in the third quarter.

Walmart’s earnings report comes as economists and investors are growing concerned about consumers tightening their purse strings. Other retailers like Target and Home Depot have said consumers are more cautious.

Walmart executives described consumer spending as steady but bifurcated, with higher-income households are driving growth, while lower-income cohorts are showing “pockets of moderation.”

Walmart also announced Thursday that it will transfer its stock listing to the Nasdaq from the New York Stock Exchange on December 9, keeping its ticker symbol.