Walmart posted earnings and revenue for its third quarter that surpassed analysts’ expectations.

In particular, the retail giant reported a gain in U.S. same-store sales — marking the first time in seven quarters that the company reported positive comparable-store sales in its core domestic retail division.

BENTONVILLE, Ark. — Walmart posted earnings and revenue for its third quarter that surpassed analysts’ expectations.

Walmart posted earnings and revenue for its third quarter that surpassed analysts’ expectations.

U.S. same-store sales rose 0.5% in the three months through October, Walmart reported Thursday. It was the first time in seven quarters that the company reported positive comparable-store sales at existing U.S. stores.

The sales rise was attributed to strength in the smaller-format Neighborhood Markets. where sales rose 5.5% from a year earlier, and to online, which posted a 21% increase in the period.

Third quarter sales were also up in the home goods, apparel, and health and wellness categories. Sales in grocery and entertainment were flat.

Net sales at Walmart’s international business grew 1.7% to $33.7 billion.

The company reported earnings per share of $1.15, or $3.7 billion in the quarter. Revenue was $119 billion, better than analyst expectations of $118.4 billion, according to Zacks Investment Research.

Greg Foran, president and chief executive officer of Walmart U.S., said during a conference call with Wall Street analysts that store traffic was starting to pick up. For the quarter, however, U.S. store traffic declined 0.7% from a year earlier.

"Our sense is that consumer confidence is reasonable out there, and there is no doubt that lower gas prices are probably giving us a bit of benefit," Foran said.

Also on Thursday, Walmart made official a price-matching offer with online retailers such as Amazon.com Inc. Walmart shoppers will be able to request the list price at Walmart.com or any online competitor, and store managers will have the authority to match that price.

Foran said store managers at about half of Walmart’s outlets are already matching online competitors’ prices.

The earnings report sent Walmart shares up more than 4.5% in late afternoon trading. That gain represented virtually all of the stock’s year-to-date increase.

Mark Miller, a retail analyst who covers Walmart for investment bank William Blair & Co., wrote in a note to clients that third quarter financial results appear to show that Walmart is on firmer footing. He maintained his “underperform” rating on the stock, however.

“We believe the company’s exposure to large-format stores is a significant liability, evident in the disparity between the 5.5% comps for Neighborhood Market and flattish comps for Supercenters,” he said. “Also, e-commerce migration is degrading general merchandise sales globally.”

In his remarks to analysts, Foran underscored the risk to fourth quarter margins from what Walmart executives expect will a period of intense competition during the upcoming holiday season.

Walmart used its annual meeting with investors last month to outline a new growth strategy that accelerates expansion of its online business and slows the pace of store openings, which analysts said was an acknowledgment that the company is having an increasingly difficult time achieving growth through expansion.

Walmart’s revised capital budget emphasizes the company’s shift in focus toward smaller Neighborhood Market grocery stores. Executives said the company would open 180 to 200 of them next year, down from 270 to 300 this year. They also said at the conference that they expect global e-commerce sales to grow by about 25% next year.