Walmart beats earnings expectations, raises outlook for 2024

Walmart beats earnings expectations, raises outlook for 2024

Walmart reported better-than-expected earnings for the fourth quarter of fiscal year 2024 on Tuesday, as the retail giant benefited from strong holiday sales, online growth, and new revenue streams. The company also raised its guidance for the current fiscal year, reflecting its confidence in the economic recovery and its competitive position.
A Walmart in Atlanta, Georgia, on Sunday, Feb. 19, 2023.

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Walmart posted adjusted earnings per share of $1.75, beating analysts’ estimates of $1.65, according to LSEG. Revenue rose 8.6% year over year to $171.3 billion, also surpassing expectations of $170.71 billion. Same-store sales in the U.S. increased 5.5%, driven by a 6.2% increase in average ticket and a 0.7% decline in transactions. E-commerce sales grew 23%, as customers continued to shop online for groceries, household essentials, and other items.

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Walmart also highlighted its progress in diversifying its income sources, such as advertising, financial services, and health care. The company said its Walmart Connect advertising platform grew revenue by more than 70% in the fourth quarter, and its Walmart Health business added 10 new locations, bringing the total to 28. The company also announced a partnership with Western Union to offer money transfer services at its stores.

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Looking ahead, Walmart said it expects adjusted earnings per share of $7.00 to $7.15 for fiscal year 2025, up from its previous range of $6.80 to $7.05. It also expects consolidated net sales to grow 4.5% to 5%, up from its prior range of 4% to 4.5%. The company said it anticipates continued momentum in its core retail business, as well as further growth in its new ventures.

“We had a strong finish to the year, with solid results across the board,” said Doug McMillon, Walmart’s president and CEO, in a statement. “We are well-positioned to serve our customers and grow our business in a rapidly changing environment. We have a clear strategy, a resilient business model, and a talented team that is executing with speed and agility.”

Walmart’s shares rose 2.4% in premarket trading on Tuesday, following the earnings release. The stock has gained 18% over the past year, outperforming the S&P 500 index, which has risen 14%.
Source : CNBC

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