Wal-Mart roars in Q2; raises forecast

Wal-Mart Stores surprised the industry on Thursday with better-than-expected profit and revenue for the second quarter. The chain raised its full-year outlook in the wake of its strong performance.



The retailing giant reported that its net income rose 8.6% to $3.8 billion in the quarter ended, up from $3.5 billion in the year-ago period.



Total revenue rose 0.5% to $120.85 billion in the quarter, slightly above analysts' projection.



At Walmart U.S., same-store sales grew 1.6%, the eight consecutive quarter of gains. Sales were driven by the retailer’s seventh straight quarter of positive traffic.



Walmart released its results the day after rival Target Corp. reported a 1.1% drop in same-store sales for its second quarter and cut its third quarter outlook.



“Our strategy is working as we delivered an eight consecutive quarter of positive comps,” said Doug McMillon, president and CEO, Wal-Mart Stores. “We remain focused on building e-commerce capabilities globally and executing our omnichannel plan, as evidenced by our recent alliance with JD.com in China and agreement to acquire Jet.com in the U.S.”



The company now estimates fiscal year 2017 adjusted EPS1 of $4.15 to $4.35, or GAAP EPS of $4.29 to $4.49, both of which include an estimated dilutive impact to EPS of approximately $0.05, primarily in the fourth quarter, as a result of expected operating losses and one-time transaction expenses related to the planned acquisition of Jet.com.