Walmart Soars As Holiday Sales Smash Estimates


Walmart, Inc. (NYSE: WMT)

Shares of Walmart traded 4.65% higher in pre-market trading Tuesday after the retail giant posted better-than-anticipated fourth quarter comparable store sales while crushing the estimates of Wall Street analysts.

The Bentonville, AR-based also maintained its sales guidance for fiscal 2020 and raised its annual dividend to $2.12 per share, up 2% from $2.08 per share.

WMT Earnings & Outlook

Fourth-quarter net income came to $3.69 billion, or $1.27 per share, compared with $2.18 billion, or $0.73 per share, in the same three months last year. Excluding one-time items, earnings were $1.41 per share.

Walmart said revenue was $138.80 billion, up from $136.27 billion in the year-ago period. Analysts surveyed by Refinitiv were expecting adjusted earnings of $1.33 per share on revenue of $138.65 billion.

Online sales climbed 43%, as the retailer continued to add more products to its website to compete Amazon and achieve its target. Comparable store sales in the U.S. grew 4.2%, surpassing the 3.2% analyst expectation. Sam’s Club posted comparable store sales growth of 3.3%, slightly missing the 3.4% analyst estimate.

Looking ahead, the retailer said it expects comparable store sales in the U.S. to grow by between 2.5% to 3% in fiscal 2020. The company also forecasts comparable store sales growth of 1% in its Sam’s Club segment for the year.

Sales from its online business is expected to rise by approximately 35%. Analysts have called for U.S. comparable store sales growth of 2.6% for the year.

Walmart CEO Comments

“We had a good year, and I want to thank our associates for their great work and openness to change. They continue to inspire us as we strive to serve our customers better every day. Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share,” said Doug McMillon, President and CEO of Walmart.

“We’re excited about the work we’re doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear – we’ll be there when, where and how they want to shop and deliver new, convenient experiences that are uniquely Walmart.”

Walmart, Inc. Profile

Walmart, Inc. engages in retail and wholesale business. It operates through the following business segments: Walmart U.S., Walmart International, and Sam’s Club. The Walmart U.S. segment operates as a merchandiser of consumer products, operating under the Walmart, Wal-Mart, and Walmart Neighborhood Market brands, as well as and other eCommerce brands.

The Walmart International segment manages supercenters, supermarkets, hypermarkets, warehouse clubs, and cash & carry. The Sam’s Club segment comprises membership-only warehouse clubs and The company was founded by Samuel Moore Walton and James Lawrence Walton on July 2, 1962 and is headquartered in Bentonville, AR. – CNN Money