Investing.com - Walmart (NYSE:WMT) shares rallied in premarket trade on Tuesday, as strong growth in online sales drove profit higher in the three months through January.
U.S. e-commerce sales soared 43%, thanks to the expansion of grocery pickup and delivery and a broader assortment on Walmart.com. The figures suggest that Walmart's investments in the online marketplace are helping it defend its turf against the likes of Amazon (NASDAQ:AMZN).
The retail giant also reported higher-than-expected comparable sales in the U.S. and reaffirmed its full-year outlook.
Walmart’s sales at U.S. stores open at least a year rose 4.2% in the quarter, excluding fuel price fluctuations. That's higher than analysts’ estimates of a 3.0% increase, according to IBES data from Refinitiv.
"Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share," chief executive Doug McMillon said in a press release.
Walmart said it expects fiscal year 2019 adjusted EPS of $4.75 to $4.85, in line with its previous guidance.
For the fourth quarter, the retail giant reported adjusted earnings per share of $1.41, beating expectations for earnings of $1.33 per share.
Revenue totaled $138.79 billion, broadly in line with forecasts of $138.81 billion.
Walmart's stock rallied 4% in premarket trade to $104.01.
Walmart follows other major Services sector earnings this month
On January 31, Amazon.com reported fourth quarter EPS of $6.04 on revenue of $72.38B, compared to forecasts of EPS of $5.65 on revenue of $71.88B.
Alibaba earnings beat analyst's expectations on January 30, with third quarter EPS of $12.19 on revenue of $117.28B. Investing.com analysts expected EPS of $11.45 on revenue of $119.03B
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