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Walmart [WMT] shares are on a rally after the company's earnings beat market expectations.
The world's biggest retailer posted fiscal third quarter results Tuesday that exceeded Wall Street expectations. It recorded sales of $169.59 billion while the analysts' estimate was $167.5 billion. At $0.58, the ajusted earnings per share came in at $0.05.
The retailer's stocks closed at $86.60, 0.5 percent above the day's opening on Tuesday.
A Yahoo Finance report cited Walmart CFO John David Rainey as saying the company achieved a "really strong quarter." The company's e-commerce makes up 18 percent of the business overall, as consumers seek convenience via delivery and pickup.
The stock is up 65 percent year to date, outperforming the Dow Jones Industrial Average's (^DJI) 14 percent advance. It has also outdone S&P Consumer Staples Index that has increased only 14.54 percent to date this year.
The company's fast-growing e-commerce and advertising operations saw revenue increase by 27 percent and 28 percent, respectively. Investopedia cites analyst view that growth in Walmart's high-margin digital advertising business could help offset the net losses Walmart is still recording in e-commerce and improve the company's overall margins.
The strong Q3 performance prompted the retailer to lift its fiscal 2025 projections, projecting sales to grow between 4.8 percent and 5.1 percent year-over-year, when compared to the previous range of 3.75 percent to 4.75 percent. The retailer also raised its adjusted earnings per share (EPS) outlook to between $2.42 and $2.47 from $2.35 and $2.43 previously.