Walmart Inc (NYSE:WMT) stock fell 7.43% (As on November 16, 11:24:10 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that surpassed analysts’ expectations. The Arkansas-based retail giant revealed a notable rebound in net income for Q3, with $453 million or 17 cents per share, a stark contrast to the loss of $1.8 billion or 66 cents per share it suffered in the same period last year. Despite these positive indicators, Walmart’s stock suffered a 7.3% drop today due to concerns over its forecast for the upcoming year. CEO Doug McMillon acknowledged an early start to the holiday season and mentioned that the company has raised its full-year guidance. Consolidated gross margin rate up 32bps positively affected by a slight improvement for Walmart U.S. and timing of Flipkart’s The Big Billion Days (“BBD”) event, which flipped from Q3 last year to Q4 this year. Consolidated operating income up $3.5 billion, or 130.1%, adjusted operating income up 3.0%1 positively affected by the impact of currency and LIFO of 2.7% and 1.9%, respectively.

WMT in the third quarter of FY 23 has reported the adjusted earnings per share of $1.53, which met the analysts’ estimates for the adjusted earnings per share of $1.53, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 5.2 percent to $160.8 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $159.49 billion. This growth was propelled by a strong performance in the U.S., where same-store sales grew by 4.9%. E-commerce sales contributed significantly to this success with a 24% surge, while the average transaction and ticket size rose by 3.4% and 1.5%, respectively. Internationally, Walmart Mexico (Walmex), and China led the way in sales growth, although international e-commerce sales saw a slight decline of 3%. Advertising revenue grew by 4%. Global advertising business grew approximately 20%, affected by BBD moving to Q4 . Walmart Connect up 26%, Sam’s Club MAP up 27%. Walmart U.S. comp sales up 4.9% and eCommerce up 24%, led by pickup & delivery. Additionally, Sam’s Club U.S. reported a sales increase of 2.8% to $22.0 billion, with food, consumables, and healthcare sectors driving this rise.

Walmart now anticipates an adjusted EPS of $6.40 to $6.48 for the year, which falls short of the FactSet consensus. The retailer also expects sales growth to range between 5% to 5.5%, aligning closely with but not exceeding FactSet’s growth expectations of 5%.