08:50 AM EDT, 08/15/2024 (MT Newswires) -- Walmart ( WMT ) on Thursday raised its full-year outlook above original expectations, as the retail giant's fiscal second-quarter results topped market estimates amid gains across all its segments.

The company now anticipates adjusted earnings to come in between $2.35 and $2.43 per share for fiscal 2025, up from its initial guidance of $2.23 to $2.37. Sales are forecast to grow by 3.75% to 4.75% in constant currency versus the original target for a 3% to 4% increase.

In May, the retailer projected both adjusted EPS and sales to be at the high end or "slightly" above its original outlook. The consensus on Capital IQ is for normalized EPS of $2.42 and revenue of $671.82 billion for the ongoing fiscal year. Shares of the company jumped 8% in premarket activity.

"Looking at the second half of the year, we expect the business to achieve sales growth in line with our financial framework and for sustained structural improvements in incremental margins," Chief Financial Officer John Rainey said on an earnings call, according to a Capital IQ transcript. "This should result in operating income growing slightly faster than sales when looking at the second half in total."

For the July quarter, Walmart's ( WMT ) adjusted EPS advanced to $0.67 from $0.61, surpassing the Street's view for $0.65. Sales improved 4.7% to $167.77 billion, ahead of analysts' $167.38 billion estimate. Total revenue, which includes membership and other income, rose 4.8% to $169.34 billion.

US comparable sales inclined 4.2%, above the 3.5% rate markets were expecting, boosted by a 22% jump in e-commerce. Same-store sales in Sam's Club moved 5.2% higher, excluding fuel, led by food and health and wellness, as well as transaction and unit volume increases. Revenue in Walmart's ( WMT ) international segment climbed to $29.57 billion from nearly $27.6 billion in the prior-year quarter.

Gross margin expanded by 43 basis points to 24.4% due to improvements in managing pricing in the US, among other factors, according to an earnings presentation. Operating, selling, general and administrative expenses widened to $34.59 billion from $32.47 billion on an annual basis.

For the current quarter, Walmart ( WMT ) expects adjusted EPS to be in a range of $0.51 to $0.52, while the Street is looking for $0.55. Sales are pegged to rise by 3.25% to 4.25% at constant currency.

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