- Walmart Inc. (WMT) shares fell nearly 8% in premarket trading after exceeding Q4 earnings expectations by $0.01 at $0.66 per share but issuing Q1 and FY26 EPS guidance below consensus at $0.57-$0.58 and $2.50-$2.60, respectively.
- The company reported a 4.1% revenue increase to $180.55 billion, with strong Q4 same-store sales growth of 4.6% at Walmart U.S. and 6.8% at Sam’s Club, driven by transaction counts and unit volumes, alongside a 20% rise in eCommerce sales.
- Despite a slight decline in international sales, Walmart raised its quarterly dividend by 13% to $0.235 per share, reflecting confidence in its financial position amidst a cautious outlook influenced by potential economic challenges.
Walmart Inc. (WMT) shares dropped $8.03 or 7.72% to $95.97 in premarket trading on Thursday following a mixed financial update that saw the retailer slightly exceed earnings expectations but disappoint with future guidance. For the fourth quarter ending January, Walmart reported earnings of $0.66 per share, beating the consensus estimate by a penny, while revenues climbed 4.1% year-over-year to $180.55 billion, aligning closely with the anticipated $180.07 billion. Despite these positives, the company’s outlook for Q1 and FY26, with EPS forecasts of $0.57-$0.58 and $2.50-$2.60 respectively – both below consensus estimates of $0.64 and $2.77 – cast a shadow over the results, signaling potential challenges ahead.
The retail giant showcased operational strength in Q4, with Walmart U.S. same-store sales rising 4.6%, fueled by higher transaction counts and unit volumes, particularly from upper-income households. Sam’s Club also performed robustly with a 6.8% increase in comparable sales, driven by growth in food and health & wellness categories across club and digital channels. eCommerce emerged as a bright spot, growing 20% thanks to strong performance in store-fulfilled pickup and delivery services, alongside a 24% surge in Walmart Connect advertising sales, bolstered by a 50% increase in marketplace seller advertisers.
Walmart International saw a slight revenue dip of 0.7% year-over-year, though it achieved a 5.7% increase on a constant currency basis, led by markets like China, Walmex, and Canada. The company also announced a 13% hike in its quarterly dividend to $0.235 per share, reflecting confidence in its cash flow despite the conservative earnings guidance. This mixed outlook – strong past performance contrasted with cautious future projections and potential tariffs on imports from Mexico and Canada – likely reflects broader retail sector dynamics. Inflationary pressures and shifting consumer behaviors could temper growth expectations, even as Walmart leverages its scale and digital transformation to sustain its market share.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply