And good news for consumers: The company plans to set prices for Thanksgiving staples the same as in 2021. For the fiscal third quarter, Walmart generated more than $152 billion in total revenue, eclipsing the nearly $148 billion expected by Wall Street analysts. The company also reported adjusted earnings per share of $1.50 for the quarter, compared to the $1.32 that analysts were expecting. Walmart saw an increase in its grocery sales this quarter as it rolled out various promotions to attract budget-conscious consumers. “Through our Deals for Days events in the U.S. and a Thanksgiving meal that will cost the same as last year, we’re here to help make this an affordable and special time for families around the world,” said CEO Walmart consultant Doug McMillon; Press release. Shoppers will be able to take advantage of savings on holiday items through Dec. 26, according to Walmart’s website. In addition to increased grocery sales, Walmart also got a boost from a strong back-to-school shopping season in the U.S. and global sales events in countries such as India and China, McMillon said on a call with investors. Back in the second quarter, Walmart’s earnings also beat Wall Street analysts’ expectations as inflation-squeezed shoppers sought affordable essentials such as groceries over discretionary goods such as clothing.
What does this mean for investors?
Shares of Walmart jumped on Tuesday after the company’s earnings call. If you had invested $1,000 in Walmart a year ago, you would have seen a small return on your investment and would have had about $1,024 as of Nov. 15, according to CNBC calculations. These calculations were made after markets opened and are based on a share price of $149. If you had invested $1,000 in Walmart five years ago, your investment would be worth about $1,755 as of Nov. 15, according to CNBC calculations. And if you had invested $1,000 in Walmart a decade ago, your investment would have more than doubled in value to be worth about $2,377 as of Nov. 15, according to CNBC calculations. Walmart is expected to continue to perform well during the holiday season as the company’s focus on low prices is expected to continue to attract price-conscious consumers, Deutsche Bank analyst Krisztina Katai predicted ahead of the earnings report . But Walmart’s performance could be hurt by a number of factors, including changes in consumer shopping habits or further increases in labor costs, Katai adds.
Investors should always do their homework
With this in mind, it is always important to remember that a stock’s past performance should not be used as an indicator of how well it will perform in the future. Given the unpredictability of the stock market, a passive investment strategy tends to make sense for most investors, rather than investing in individual stocks. Investing in a market index such as the S&P 500 can be a great way to start. Since the S&P 500 tracks the performance of the stocks of large US publicly traded companies, investing in an S&P 500 index fund or an exchange-traded fund (ETF) can be a great way to gain exposure to a number of well-known companies. As of Nov. 15, the S&P 500 is down about 15% from 12 months ago, according to CNBC calculations. However, the index has increased by about 55% since 2017 and is up by about 196% since 2012. Want to earn more and work less? Register for the free CNBC Make It: Your Money virtual event on December 13 at 12 p.m. ET to learn from money gurus like Kevin O’Leary how you can increase your profitability. Don’t miss: Apple just announced its new iPhone 14—see how much you’d get if you invested $1,000 a decade ago
