The Walmart (WMT) Q3 F2018 earnings results were released before opening bell this morning, and the company posted adjusted earnings of $1 per share on $123.2 billion in sales. Wall Street had been looking for earnings of 97 cents per share on $121.04 billion in revenue. In the third quarter of fiscal 2017, the big box retailer posted $118.18 billion in sales.

By Walmart Corporate from Bentonville, USA (Walmart store exterior) [CC BY 2.0], via Wikimedia Commons

Walmart Q3 F2018 earnings

On a GAAP basis, Walmart Q3 F2018 earnings came in at 58 cents per share, compared to 98 cents per share a year ago. This year’s GAAP earnings included a charge of 29 cents per share for debt extinguishment, a charge of 9 cents per share related to “discussions with government agencies regarding the possible resolution of the FCPA matter,” and a charge of 4 cents per share for the exit of certain international market properties.

U.S. comparable-store sales grew 2.7% year over year, which was much better than the consensus of 1.9% growth. Comparable traffic in the U.S. grew 1.5%, while average ticket size increased 1.2% in the U.S. Sam’s Club same-store sales grew 2.8%, also beating the consensus of a 1.4% increase. E-commerce sales grew 50% year over year, while gross merchandise volume increased 54%.

Walmart International sales grew 4.1% to $29.5 billion with growth recorded in 10 of the retailer’s 11 markets, including the four biggest markets.

Walmart raises earnings guidance

Along with the Walmart Q3 F2018 earnings release, management also announced that they’ve increased their earnings per share guidance for fiscal 2018. They now expect earnings of $4.38 to $4.46 per share on an adjusted basis, compared to their previous expectations of $4.30 to $4.40 per share. On a GAAP basis, Walmart expects full-year earnings to be between $3.84 and $3.92 per share.

The big box retailer expects comparable sales for the 13 weeks ending on Jan. 26 to be up by 1.5% to 2% in the U.S., excluding fuel. It also expects comparable sales at Sam’s Club to grow by 1.5% to 2% year over year.

Following the Walmart Q3 F2018 earnings release, the retailer’s stock surged by as much as 4.75% to $94.10 in premarket trading, putting it on track for a new record high.