WMT Alert: Why Walmart Stock Is a Strong Buy After Q1 Earnings

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Walmart (NYSE:WMT) stock released its Q1 FY25 earnings results on Thursday, May 16, and investors and analysts are impressed with their performance. Consolidated revenue came in at $161 billion, an increase of 6% YOY. 

Additionally, consolidated gross margin was up 42 bps, on the back of improvements across all segments. Its global advertising business also grew 24% from the year prior, including a 26% bump for Walmart Connect. With the stock now up more than 20% YTD, now is a great time for investors to take a closer look. 

Strong Q1 FY25 Earnings Results

Investors are bullish after Walmart’s impressive Q1 FY25 earnings results. Consolidated revenue came in at $161 billion, an increase of 6% YOY. 

Its global advertising business grew 24% YOY, including 26% for Walmart Connect in the United States. Walmart International’s advertising business grew 27%, led by FlipKart and Walmex.

Walmart’s International business remains strong, with net sales up 10.7%, led by FlipKart, China, and Walmex. E-commerce sales increased 19% YOY, with considerable strength in food and consumables. 

Sam’s Club comparable sales also grew 4.6% YOY. Walmart stock has attributed these results to continued strong performance in its grocery business, as well as growth in e-commerce, advertising, and other businesses.

Omnichannel Strategy is Working

Walmart stock continues to make significant progress on its omnichannel strategy. This strategy drives operational efficiency and profitability and make it easier for customers to shop and spend. 

Their omnichannel strategy has been a key driver of its recent success. The company has invested heavily in expanding its e-commerce footprint, and it has continued to pay its dividends. 

They have also been able to leverage its physical stores to fulfill online orders, which has helped improve customer experience and reduce costs. The option for store-fulfilled delivery and pickup options has led to their strong e-commerce sales growth in the last several quarters. 

Walmart Stock: It’s Time to Pounce

Walmart stock remains well positioned to continue its surge in 2024. The company redefined strategy is working, as management continued to drive diversified growth. 

Their omnichannel strategy is working, and their e-commerce sales continue to accelerate at a fast pace.

Their strength in international markets led by Walmex, China, and FlipKart is driving increased market penetration. Investors should pounce on the stock in 2024 on the back of strong revenue and EPS guidance for FY25. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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