Why Walmart stock is up today

Actions of Walmart (WMT 6.67%) they jumped today after the retail giant delivered another strong earnings report, beating estimates on the top and bottom lines and raising its full-year guidance.

The results showed Walmart continues to perform as well as any other retailer in a challenging environment, thriving on its grocery business, reputation for low prices and strong omnichannel execution.

As of 10:13 a.m. ET, the stock was up 6.7% on the news.

Image source: Walmart.

Walmart is still crushing it

Walmart has been one of the market’s most resilient retailers in recent years, and that pattern continued in the second quarter. Revenue rose 4.8 percent to $169.3 billion, beating estimates of $168.5 billion.

Comparable sales at Walmart’s U.S. stores, which make up the bulk of the business, rose 4.2 percent without fuel, and e-commerce sales rose 21 percent globally, showing the company continues to gain share on that key market. Walmart is also gaining traction in its advertising business, with revenue up 26% globally and 30% in the US.

The company reduced inventory by 2%, helping to boost gross margins by 43 basis points to 24.4%. Operating income rose in all three segments, and adjusted earnings per share rose 10% to $0.67, ahead of the $0.65 consensus.

CEO Doug McMillon said: “Every part of our business is growing – in-store and club sales are growing, e-commerce is getting worse as we scale, and even faster growth in shipments as our speed improves” . He also credited third-party market strength, advertising and membership for the strong performance.

Walmart sees more growth ahead

Saying the consumer environment is broadly stable, Walmart raised its guidance for the fiscal year. It now expects net sales to grow between 3.75% and 4.75%, up from a previous range of 3% to 4%.

It also raised its adjusted EPS guidance from $2.23-$2.37 to $2.35-$2.43, which matches the consensus at the top and is ahead of 2.22 USD in the year-ago quarter.

Investors appear to be betting the retailer will beat that guidance as Walmart fires on all cylinders. The stock looks like a good bet to keep marching higher.