Executive Summary

• Walmart reported fiscal 2Q18 adjusted EPS of $1.08, up from $1.07 in the year-ago quarter and beating the $1.07 consensus estimate. Total revenues were $123.4 billion, up 2.1% year over year and beating the consensus estimate of $122.8 billion.
• US comp sales increased by 1.8%, in line with the consensus estimate, on a 1.3% increase in traffic. E-commerce sales and gross merchandise value (GMV) increased by 60% and 67%, respectively, mostly from organic growth.
• The $0.94 midpoint of the company’s fiscal 3Q18 EPS guidance of $0.90–$0.98 is lower than the $0.97 consensus estimate. Walmart narrowed its FY18 EPS guidance range upward to $4.30–$4.40 versus $4.20–$4.40 previously and versus the consensus estimate of $4.36.