JP Morgan analyst Christopher Horvers expressed views on Walmart Inc's (NYSE: WMT) strong third-quarter FY25 results reported today.
Walmart reported sales of $169.6 billion, beating estimates, with adjusted EPS of $0.58 and global eCommerce sales up 27%.
The company raised FY25 guidance for adjusted EPS to $2.42-$2.47 and sales growth to 4.8%-5.1%, citing strong U.S. performance.
The analyst writes that, similar to prior quarters, Walmart maintains a prudent forecast despite consistent outperformance.
The analyst adds that strong U.S. and international gross margin trends drive structural profitability improvements, supporting their Overweight rating.
Horvers says that ongoing share gains and upward revisions strengthen the bullish case despite FX headwinds and limited SG&A leverage.
The analyst writes that FY guidance suggests fourth-quarter net sales growth of 3.4%-4.5% (vs. Street's 3.7%), operating income growth of 5.7%-8.5% (vs. Street's 8.7%), and EPS of $0.57-$0.62 (vs. Street's $0.66).
Investors can gain exposure to the stock via Vanguard Consumer Staples ETF (NYSE: VDC) and Fidelity MSCI COnsumer Staples Index ETF (NYSE: FSTA).
Price Action: WMT shares are up 3.74% at $87.22 at the last check Tuesday.