Walmart Beats Earnings Forecasts
Shares in US retailer Walmart surged higher yesterday after the iconic company posted better-than-expected Q2 earnings. On the back of earlier issuing a profit warning for Q2, traders were bracing for negative results. Given Walmart’s status as a bellwether for the US economy, a poor set of earnings would have likely had dire consequences for broader US markets.
However, despite these forecasts, Walmart posted EPS of $1.88 vs $1.62 and revenues of $153 billion vs $151 billion. On the back of these results, Walmart shares were seen gapping 5% higher at the US open yesterday.
Speaking on the earnings call yesterday, Walmart CEO Doug McMillon explained how to offset the downturn over Q2, saying: "In Walmart's U.S. business, we have seen mid-to-higher income customers come to Walmart looking for value. As you would expect, food and consumables, in particular, are places where they're looking to save some money."
Shares in Walmart have now broken out above the 135.48 level. While above here, and with both MACD and RSI bullish, the focus is on a further push higher towards the 146.21 level next. To the downside, any move back under the level will put focus on support at the 129.49 level next.