Walmart beats estimates, raises outlook as it sees stable consumer health

Walmart raised its forecast for the year on Thursday, as quarterly revenue grew nearly 5%, the company's stores and website drew more visits and sales outside the grocery department improved. 

The discounter beat Wall Street's expectations for sales and profits.

Walmart said it now expects sales to rise by 3.75% to 4.75% for the full year, and adjusted earnings to come in between $2.35 and $2.43 per share.It previously said it expected to be on the high end or slightly above its initial full-year guidance, which called for net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37.

In an interview with CNBC, Chief Financial Officer John David Rainey said the company's brighter outlook reflects strength in the first half of the year. 

"We see, among our members and customers, that they remain choiceful, discerning, value-seeking, focusing on things like essentials rather than discretionary items, but importantly, we don't see any additional fraying of consumer health," Rainey said.

He said every month of the quarter was "relatively consistent."

Walmart saw another promising indicator: Sales of general merchandise, such as lawn and garden supplies, were positive for the first time in 11 quarters. He said those sales were up only slightly, however. 

Here's what the discounter reported for the fiscal second quarter compared with what Wall Street expected, according to a survey of analysts by LSEG:

Walmart's net income dropped to $4.5 billion, or 56 cents per share, in the three-month period that ended July 31,compared with $7.89 billion, or 97 cents per share, in the year-ago period.

Revenue rose from $161.63 billion in the year-ago quarter. 

Comparable sales for Walmart U.S. rose 4.2% in the second