Wal-Mart beats on earnings, thanks to the internet

Walmart's third-quarter earnings topped analysts' expectations, as traffic to the world's largest retailer increased and online shopping grew.

The company on Thursday announced earnings per share of $0.98, two cents more than the Wall Street consensus according to Bloomberg.

Comparable-store sales, or sales at locations open at least one year, rose by 1.2%, just shy of the forecast for 1.3%.

SEE MORE: Uber is giving away free rides from the airport for the holidays

"Our e-commerce growth accelerated, operations in the US continued to strengthen, and international delivered another solid performance," CEO Doug McMillon said in the earnings statement.

Walmart in August agreed to buy Jet.com for $3 billion, the largest e-commerce deal in history, to boost its online shopping experience. If the deal is completed, it could give Walmart the e-commerce muscle it needs to overtake Amazon.

Walmart raised the lower end of its forecast for the year, now anticipating earnings of $4.20 to $4.35 a share. It earlier set the lower end at $4.15.

Grocery costs have been falling since the end of 2015, according to Labor Department inflation data. And last quarter, cheaper groceries took out 0.15% from Walmart's food sales.

Expenses rose 9% as the company spent on the Jet.com acquisition and increased its associates' wages.

Check out young shoppers' favorite brands as we head into the holidays:

25 PHOTOS
Millennials' favorite retail brands
See Gallery
Millennials' favorite retail brands
24. Levi's

23. Calvin Klein

Photo via Getty

22. Ralph Lauren

21. Michael Kors

Photo via Getty

20. Walmart

Photo via Shutterstock

19. Macy's
18. Vans

17. Old Navy

Photo via Shutterstock

16. Converse

15. Adidas

Photo via Shutterstock

14. Gap

13. Under Armour

Photo via Getty

12. Bath & Body Works

Photo via Getty

11. Nordstrom

10. Target

Photo via Alamy

9. Urban Outfitters 
8. J.Crew
7. H&M

6. Sephora

Photo via Shutterstock

5. Lululemon

Photo via Getty

4. Zara

Photo via Getty

3. Forever 21

Photo via Shutterstock

2. Victoria's Secret

Photo via Getty

1. Nike
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

NOW WATCH: A hacker reveals a simple way to come up with a strong password that's easy to remember

See Also:
Target is soaring after demolishing earnings
JC Penney slashes its sales forecast and its shares are crumbling
Nordstrom spikes 7% after crushing earnings

SEE ALSO: The 24 best US stocks you can buy right now, according to Bank of America

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.