People talk outside a Wal-Mart Pickup-Grocery store in Bentonville, Arkansas.

Rick Wilking | Reuters

Walmart‘s first-quarter earnings surged past Wall Street’s estimates on Tuesday as the company reported strong grocery sales and e-commerce growth, and raised its outlook for the year.

Shares were up about 1.5% early Tuesday in pre-market trading.

The big-box retailer said more shoppers have headed to its stores and website to spend stimulus checks and to get ready to socialize again as Covid-19 cases decline and vaccination rates rise. 

Notably, e-commerce sales in the U.S. rose by 37% even as consumers return to more normal activities. 

Walmart CEO Doug McMillon said the company anticipates “pent-up demand” throughout 2021.

The company raised its outlook for the fiscal year. It expects earnings per share and Walmart U.S.’s operating income to increase in the high single-digits. It reiterated its guidance that Walmart U.S. and Sam’s Club same-store sales will grow in the low single-digits excluding fuel and tobacco.

“Our optimism is higher than it was at the beginning of the year,” he said in a press release. “In the U.S., customers clearly want to get out and shop.”

Here’s what the company reported for the fiscal first quarter ended April 30, according to Refinitiv consensus estimates:

  • Earnings per share: $1.69 adjusted vs. $1.21 expected
  • Revenue: $138.31 billion vs. $131.97 billion expected

In the quarter, Walmart reported net income rose to $2.73 billion, or 97 cents per share, from $3.99 billion, or $1.40 per share, a year earlier. Excluding items, the company earned $1.69 per share. Analysts were expecting Walmart would earn $1.21 per share, according to Refinitiv.

Total revenue grew by nearly 3% to $138.31 billion from $134.62 billion a year earlier, exceeding Wall Street’s expectations of $131.97 billion.

Walmart’s same-store sales in the U.S. grew by 6%, higher than the increase of 0.9% expected by analysts, according to a StreetAccount survey. The company said those sales got a lift from grocery sales, as it gained market share.

Same-store sales for Walmart subsidiary, Sam’s Club, jumped by 7.2% excluding fuel — more than the 1.2% growth expected by analysts.

This story is developing. Please check back for updates.

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