Walmart (WMT, Financial) reported strong third-quarter earnings results, with revenue and profit smashing analysts' estimates. Net sales increased to $169 billion, 5.4% up from the previous year, while operating income rose to $6.7 billion, an 8.2% improvement from the prior year. Share buybacks propelled EPS up by 850%, reported $0.57.

• Warning! GuruFocus has detected 6 Warning Sign with WMT.

Inflation-conscious customers prove advantageous for Walmart. US Same-Store Sales went up by 5.3%, with food and pharmacy being the biggest contributors to the increase. In the year, the company registered positive market penetration in terms of income earner status, even among high-income earners.

Due to this strong performance, Walmart increased its full-year EPS outlook for the second time in fiscal 2024. The company now anticipates picking a net sales increase between 4.8% to 5.1% and an 8.5% to 9.25% boost of adjusted operating income, excluding currency swings.

Walmart's good performance confirms that the company is well-positioned for a countercyclical economy. Its inexpensive product strategy is paying off, especially considering that inflation pressures consumers' expenditures.

This article first appeared on GuruFocus.