Earnings Results: Walmart stock soars toward biggest earnings gain in 4 years, as improved inventory position pleases Wall Street

by | Nov 15, 2022 | Stock Market

Shares of Walmart Inc. soared Tuesday toward a six-month high, after the discount retail behemoth reported a big fiscal third-quarter earnings beat, raised its full-year outlook, improved its inventory position and set a new $20 billion stock repurchase program. The company also announced a $3 billion settlement of opioid litigation, to put that overhang behind it.

The stock
WMT,
+7.42%
shot up 7.0% in morning trading, enough to pace the Dow Jones Industrial Average’s
DJIA,
+0.61%
gainers. The stock’s $9.68 price gain added about 64 points to the price of the Dow, which was up 282 points, or 0.8%. The stock was also headed for the biggest one-day gain since it climbed 11.7% on March 17, 2020, and the biggest one-day, post-earnings gain since it hiked up 9.3% on Aug. 16, 2018, after results for the fiscal second quarter of 2018 were reported. “Walmart’s 3Q22 print checked all the major boxes, including a surprisingly large beat in the quarter, 4th-quarter guidance that is at least in line with consensus if not a bit better on the important line items, and perhaps most impressively, a significant improvement in their inventory position,” D.A. Davidson analyst Michael Baker wrote in a note to clients, while reiterating his buy rating. Walmart swung to a net loss for the quarter to Oct. 31 of $1.80 billion, or 66 cents a share, from net income of $3.11 billion, or $1.11 a share, in the same period a year ago. Excluding nonrecurring it …

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