Summary
Walmart Inc. reported its financial results for the quarter and nine months ended October 31, 2018. For the third quarter, total revenues increased by 1.4% to $124.9 billion, while net income attributable to Walmart was $1.71 billion, a slight decrease from the prior year's $1.75 billion. Diluted earnings per share remained flat at $0.58. The nine-month period saw total revenues increase by 3.2% to $375.6 billion, but consolidated net income attributable to Walmart significantly decreased to $2.98 billion from $7.69 billion in the prior year, largely due to a substantial pre-tax loss of $4.8 billion from the sale of Walmart Brazil and an unrealized loss of $3.7 billion on the investment in JD.com. The company made significant strategic moves, including the acquisition of a majority stake in Flipkart for $16 billion, which is expected to impact net income in fiscal years 2019 and 2020. The proposed combination of Asda with J Sainsbury plc is progressing, subject to regulatory review. Despite a large pre-tax loss associated with the Walmart Brazil divestiture, the company maintained a strong operating performance in its core Walmart U.S. segment, which saw a 3.7% increase in net sales for the quarter. Investments in eCommerce, technology, and supply chain continue to be a focus for capital allocation.
Financial Highlights
50 data points| Revenue | $123.90B |
| Cost of Revenue | $93.12B |
| Gross Profit | $30.78B |
| SG&A Expenses | $26.79B |
| Operating Income | $4.99B |
| Interest Expense | $501.00M |
| Net Income | $1.71B |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.19 |
| Shares Outstanding (Basic) | 8.77B |
| Shares Outstanding (Diluted) | 8.82B |
Key Highlights
- 1Total revenues for the three months ended October 31, 2018, rose 1.4% to $124.9 billion, while nine-month revenues increased 3.2% to $375.6 billion.
- 2Consolidated net income attributable to Walmart for the nine months ended October 31, 2018, significantly decreased to $2.98 billion from $7.69 billion in the prior year, impacted by large divestiture and investment losses.
- 3Diluted EPS for the quarter was flat at $0.58, but for the nine months it was $1.01, down from $2.54 in the prior year.
- 4The company acquired approximately 77% of Flipkart for $16 billion, a significant strategic investment in e-commerce in India.
- 5Walmart U.S. segment showed robust growth with net sales increasing 3.7% for the quarter, driven by comparable sales growth of 3.4%.
- 6The company divested 80% of Walmart Brazil, resulting in a pre-tax net loss of approximately $4.8 billion for the nine-month period.
- 7Capital expenditures shifted towards e-commerce, technology, and supply chain, with a reduced focus on new store openings.