Wal-Mart Stores, Inc. (NYSE: WMT) Tuesday posted its fiscal fourth quarter earnings that topped Wall Street estimates, thanks to strong growth in online sales.
The world’s largest retailer said revenue rose 1 percent to $130.9 billion in the fourth quarter, missing analysts’ estimates of $131.22 billion due to the strong dollar. Excluding foreign exchange impact, total revenue was up 3 percent. Although Wal-Mart’s profitability declined due to heavy investments recently, the company still posted adjusted earnings of $1.30 per share, beating $1.29 per share expected by a Thomson Reuters consensus estimate.
“We’ve been waiting a long time for Wal-Mart to show these kinds of numbers. We like what we’re seeing here. They’re doing all the right things,” Jan Kniffen, CEO of J.Kniffen Worldwide Enterprises, told CNBC.
In order to expand its e-commerce business and better compete against Amazon, Wal-Mart has acquired Jet.com for $3 billion. With the help of Jet.com, Wal-Mart’s U.S. online sales rose 29 percent during the fourth-quarter.
“We continue to invest in e-commerce to accelerate growth,” CEO Doug McMillon said in prepared remarks. “We’re gaining traction and moving faster.”
For fiscal 2018, the company expected earnings per share to be between $4.20 a share and $4.40 a share, compared with analysts’ estimates of $4.33 per share. Wal-Mart shares rose 2.88 percent to $71.36 in the early trading in New York.