Walmart’s Financial Results Narrowly Beat Wall Street Targets

Discount retailer Walmart (WMT) has reported fourth-quarter 2024 financial results that narrowly beat Wall Street forecasts. The Arkansas-based company announced earnings per share (EPS) of $0.66 U.S., which topped consensus estimates of $0.64 U.S. Revenue in the October through December quarter totaled $180.55 billion U.S., which was ahead of the $180.01 billion U.S. expected among analysts. Sales were up 4% from a year ago.However, Walmart’s e-commerce sales during the quarter rose 20% in the U.S. as growth in store pick-ups and home deliveries accelerates. Global e-commerce sales rose 16%.Management said the year-end 2024 results also got a boost as more upper-income shoppers visit its stores. Same-store sales increased 4.6% for Walmart’s U.S. business and 6.8% for Sam’s Club, excluding gasoline sales.While Walmart managed to surpass analyst expectations with its Q4 2024 print, the company’s guidance underwhelmed, sending the stock down 8% in premarket trading. Looking to the year ahead, Walmart said it expects net sales to grow 3% to 4% and adjusted operating income to grow between 3.5% and 5.5% on a constant currency basis. That outlook represents a slowdown as Walmart posted adjusted operating income growth of 9.6% on a constant currency basis in the just completed quarter.The company also said it expects full-year earnings of $2.50 U.S. to $2.60 U.S. per share. That fell short of the $2.76 U.S. per share forecast on Wall Street.Walmart also flagged potential impacts to its finances should tariffs be imposed on Mexico and Canada, saying its stores won’t be “immune” from a trade war. Lastly, Walmart announced that it is increasing its annual dividend by 13% to $0.94 U.S. per share. That’s the biggest increase to the dividend in more than a decade.Prior to today (Feb. 20), Walmart’s stock had risen 77% over the last 12 months to trade at $104 U.S. per share.