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What Do Walmarts Earnings Say About the Upcoming Holiday Season?

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Real Money stock of the day Walmart (WMT) - Get Walmart Inc. Report reported earnings before the bell Thursday, Nov. 15. 

Walmart reported earnings of $1.16 per share, ahead of the forecast of $1.09 per share. Revenues rose 2.5% from last year to $127.991 billion but came in below estimates of $128.6 billion.

U.S. same-store sales rose 3.2%, Walmart said, topping forecasts and notching the fifth consecutive year of comparable-store gains. E-Commerce sales, the group said, rose 41%, well ahead of the 35% gain expected by analysts. Walmart also said fiscal 2020 earnings would likely increase "slightly" from the previous year, an upgrade from its prior forecast of either a modest gain or a modest decline.

But, what do these earnings say about the holiday season? TheStreet's Tony Owusu and Real Money contributor Chris Versace broke down what investors need to know.

"Walmart is kind of a mixed bag right now. On the one hand, you have a company that just posted this 21st consecutive quarter of US revenue growth while also having online sales growth at 41%, which was ahead of its own expectations of 35%. On the downside, you have the ecommerce, business losses that could rise to $1.7 billion this year, but $1.4 billion according to Morgan Stanley. And so they're spending a lot of money to get this new business. So right now it's a mixed bag, but the good news is the increased guidance going into the holiday season, which of course is very important," said Owusu.

Over on Real Money, Stephen 'Sarge' Guillfoyle penned a column on Walmart's earnings.

"E-commerce rocked. That line once again showed rather robust growth. 41% for the quarter, supported to a significant degree by the grocery business," said Guilfoyle. 

Watch the full video for more on Walmart. 

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