Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Walmart (WMT) reports earnings for the third quarter of 2020.

Walmart (WMT) reports earnings for the third quarter of 2020.

A woman is shopping at a Walmart supercenter store in Rosemead, California.

Frederic J. Brown | AFP | Getty Images

The strong food business helped Walmart's online sales grow by 41% in the third quarter, the company said Thursday, feeding its profits.

Total sales in the recent period do not exceed analysts' expectations. But Walmart raised its annual earnings expectations ahead of the holiday season.

Its shares jumped more than 3% in the pre-sale trading of news.

Here's what Walmart reported for its fiscal third quarter compared to what analysts expect, based on Refinitiv data:

  • Earnings per share: $ 1
    .16, adjusted against $ 1.09 expected
  • : $ 127.99 billion vs. $ 128.65 billion estimated
  • US same-store sales: 3.2% increase over 3.1% expected growth

Net income for the period ended October 31 rose to 3.29 $ 1 billion, or $ 1.15 a share, up from $ 1.71 billion, or 58 cents a share, a year ago. Excluding one-time fees, Walmart earned $ 1.16 per share, exceeding expectations of $ 1.09, based on Refinitiv data.

Total revenue rose 2.5% to $ 127.99 billion from $ 124.89 billion a year ago. But this is slightly less than the $ 128.65 billion estimate

Online sales and Walmart stores operating for at least 12 months in the US increased 3.2%, supplementing growth forecasts of 3 , 1%.

The company said sales were up 41% thanks to "strong growth" in online groceries. A year ago, they jumped 43%. Walmart's online sales increased 37% last quarter. The company calls for an increase in e-commerce sales in the US of 35% for the year, which would be slightly less than what it registered in fiscal 2019.

Walmart stated that the average ticket in the US grew by 1.9% in compared to a 1.8% increase a year ago. Transactions increased by 1.3% in the last quarter, slightly lower than the 1.6% increase this time last year.

Looking at the full year, Walmart now expects adjusted earnings per share for fiscal 2020 to "increase slightly" from last year, Previously, he called for adjusted earnings per share, which would vary between a slight decrease to a slight raise. Analysts call for 0.3% growth. Excluding Flipkart, Walmart says annual revenues should be high single digits.

The company added that it "continues to assess the ongoing civil unrest in Chile and did not include any potential discrete financial effects in its assumptions." to offer buyers the fastest service possible.

Amazon announced its plans in October to begin delivering free food within a two-hour window to all Prime members living in 2000 eligible regions. By then Prime members had to pay an extra $ 14.99 a month to access Amazon Fresh, a separate program that offered two-hour grocery delivery.

Walmart began testing food deliveries directly to customers' refrigerators in three cities. Its InHome grocery membership program costs $ 19.95 per month. And making the most of its brick-and-mortar stores, it has more than 2,700 online groceries at Walmart, also offers an unlimited 1400 seat option where customers can pay $ 98 yearly or $ 12.95 a month for unlimited food delivery.

Walmart shares have grown nearly 30% this year. The retailer has a market cap of about $ 344.2 billion, compared to Amazon's $ 867 billion.

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