NASDAQ$WMT

Walmart Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Walmart had a strong quarter with revenue growth and increased market share in the U.S., driven by strong comp sales and eCommerce performance.

Walmart's Q2 2022 earnings report showed a 2.4% increase in total revenue to $141.0 billion. Walmart U.S. comp sales grew 5.2%, and adjusted EPS was $1.78. The company raised its outlook for the second consecutive quarter, expecting FY22 Walmart U.S. comp sales growth of 5% to 6% and Global eCommerce sales of $75 billion.

  • Walmart U.S. comp sales grew 5.2% with strong comp transactions at 6.1%.
  • Global eCommerce sales are on track to reach $75 billion by the end of the year.
  • Sam's Club comp sales increased 7.7%, with eCommerce sales growing 27%.
  • Consolidated operating income increased 21.4% to $7.4 billion.

Headline financials

Total Revenue

$141B

Previous: $138B+2.4%
EPS (adj)

$0.59

Previous: $0.52+13.5%
Capital Expenditures

-$5.02B

Previous: -$3.57B-40.6%
Free Cash Flow

-$743M

Previous: $2.91B-125.6%
Net Income

$4.28B

Previous: $6.48B-34.0%
Operating Income

$7.35B

Previous: $6.06B+21.4%
Gross Profit

$35.9B

Previous: $35.1B+2.3%
Cash & Equivalents

$22.8B

Previous: $16.9B+35.0%
Total Assets

$239B

Previous: $237B+0.5%

Revenue & EPS history

Walmart · Revenue · Quarterly

$141B

Q2 2022+2.4%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Walmart · $141B total across 4 segments · Q2 2022

  • Walmart U.S.
    $98.2B
  • Walmart International
    $23B
  • Sam's Club U.S.
    $18.6B
  • Membership & Other
    $1.18B

Forward guidance

The company updated its expectations for Q3 and fiscal year 2022, assuming continued strength in the U.S. economy and no significant additional government stimulus for the remainder of the year.

Tailwinds

  • Consolidated net sales growth up 6% to 7%, or more than $30 billion (excluding divestitures)
  • Walmart U.S. comp sales up 5% to 6%, excluding fuel
  • Sam’s Club comp sales up 7.5% to 8.5%, excluding fuel and tobacco
  • Walmart International net sales increase 7% to 8%, excluding divestitures
  • Consolidated operating income increase 11.5% to 14%, excluding divestitures in constant currency

Headwinds

  • Consolidated net sales slightly positive in constant currency
  • Walmart International net sales decline 21.5% to 22.5% in constant currency due to divestitures
  • Consolidated expense leverage slightly leverage
  • Consolidated operating income increase 9% to 11.5% in constant currency
  • EPS increase high single-digits

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.0%

Avg return

30 days after

39%

28 / 72 earnings

Positive

+10.6%

Q1 2017

Best reaction

-17.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+0.7%
Q4 2026-1.4%+0.1%-6.0%
Q3 2026+5.9%+6.4%+13.7%
Q2 2026-4.2%-6.4%-0.2%
Q1 2026-0.5%+1.0%-2.5%
Q4 2025-6.5%-6.1%-17.3%
Q3 2025+3.7%+7.6%+11.1%
Q2 2025+7.0%+8.6%+17.4%
Q1 2025+8.1%+8.9%+12.0%
Q4 2024+2.0%+3.1%+8.2%
Q3 2024-8.5%-8.2%-10.0%
Q2 2024-0.8%-1.4%+3.4%
Q1 2024+0.3%-0.8%+4.0%
Q4 2023-1.5%-2.7%-4.0%
Q3 2023+7.3%+8.6%+5.0%
Q2 2023+5.2%+3.3%+0.7%
Q1 2023-17.4%-19.6%-18.6%
Q4 2022+3.3%+2.2%+8.9%
Q3 2022-3.4%-3.1%-2.4%
Q2 2022-1.1%+0.5%-3.8%
Q1 2022+2.2%+2.1%-0.8%
Q4 2021-6.0%-8.0%-10.5%
Q3 2021-2.2%-1.4%-4.2%
Q2 2021-2.3%-2.9%+0.8%
Q1 2021-1.7%-2.6%-7.6%
Q4 2020-0.2%+0.6%+1.3%
Q3 2020-1.8%-0.9%-0.6%
Q2 2020+6.4%+5.5%+10.6%
Q1 2020+1.0%+1.2%+9.2%
Q4 2019-0.1%-0.4%-0.9%
Q3 2019-3.8%-7.3%-9.5%
Q2 2019+8.5%+6.5%+4.8%
Q1 2019-2.9%-3.2%-2.8%
Q4 2018-12.7%-11.3%-16.8%
Q3 2018+8.5%+7.4%+8.1%
Q2 2018-2.0%-1.2%-0.7%
Q1 2018+4.9%+4.5%+0.2%
Q4 2017+3.4%+4.4%+0.7%
Q3 2017-4.0%-1.8%-0.6%
Q2 2017-0.2%-1.3%-0.1%
Q1 2017+10.6%
Q4 2016-2.2%
Q3 2016+5.3%
Q2 2016-4.6%
Q1 2016-5.0%
Q4 2015-2.3%
Q3 2015+4.7%
Q2 2015-0.2%
Q1 2015-2.2%
Q4 2014-2.3%
Q3 2014+0.4%
Q2 2014-3.0%
Q1 2014-2.5%
Q4 2013+1.7%
Q3 2013-4.6%
Q2 2013-3.3%
Q1 2013+5.5%
Q4 2012-6.2%
Q3 2012-2.9%
Q2 2012+3.1%
Q1 2012-1.6%
Q4 2008-0.4%
Q3 2011+0.8%
Q2 2011+3.2%
Q4 2010+3.2%
Q1 2010-1.9%
Q1 2011+0.1%
Q3 2009-1.6%
Q3 2010-1.6%
Q4 2009-0.7%
Q2 2009-0.7%
Q2 2010-0.7%

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