Wal-Mart Stores Inc. (NYSE: WMT) reported first-quarter fiscal 2017 results before markets opened Thursday. The retailing giant posted diluted earnings per share (EPS) of $0.98 on total revenues of $115.9 billion, which includes membership fees in Sam’s Club. In the same period a year ago, Wal-Mart reported EPS of $1.03 on revenues of $114.83 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.88 and $113.22 billion in revenue.

U.S. first-quarter same-store sales, both including and excluding fuel sales, rose 1% at the company’s supercenter and discount stores. Same-store sales in the company’s Sam’s Club stores were up 0.1% excluding fuel and down 1.9% including fuel sales. Same-store sales at the Neighborhood Market stores rose approximately 7.1% in the quarter, and total U.S. net sales rose 4.3% for the quarter.

Operating income fell 7.1% year over year in the first quarter. The company attributed the decline to “planned investments in people and technology” and currency fluctuations. Not including currency fluctuations, operating income fell 4.6%.

When Wal-Mart reported fourth-quarter results in February, the company projected that its investments in higher wages and employee training would cost about $0.30 per share over the full year, with the biggest impact coming in the first quarter, so this result was probably baked in to analysts’ estimates.

Wal-Mart guided fiscal second-quarter EPS in a range of $0.95 to $1.08 and U.S. same-store sales for the quarter up about 1%. Guidance assumes that currency exchange rates remain where they are now.

Consensus estimates call for second-quarter EPS of $0.98 and revenues of $119.26 billion. For the 2017 fiscal year, analysts are looking for EPS of $4.14 and sales of $482.23 billion.

During the first quarter, Wal-Mart repurchased $2.74 billion in its common stock (about 41 million shares) and has $14.7 billion remaining in its $20 billion authorized buyback program.

Wal-Mart CEO Doug McMillon said:

We are pleased to see the U.S. comp result, strong performance outside the U.S., membership trends in Sam’s Club and EPS results versus guidance. In addition, we are focused on building the e-commerce capabilities we need to drive growth to a higher level and deliver the seamless shopping experience for customers they desire. Another highlight is the improved inventory position that contributed to strong cash flow performance. We’re off to a good start for the year.

Shareholders appear to agree with McMillon. Wal-Mart’s shares traded up nearly 9% in premarket trading Thursday morning, at $68.80, in a 52-week range of $56.30 to $76.42. Thomson Reuters had a consensus analyst price target of $65.04 before the results were announced. The high target is $80.00.

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