Walmart Q4 Results Top Estimates

(RTTNews) - Retail giant Walmart Inc. (WMT) reported Thursday a profit for the fourth quarter that surged 76 percent from last year, driven by 7.3 revenue growth amid broad-based strength across segments in stores and eCommerce. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

However, shares of the retailer are down $5.24 or 3.58 percent to $141.20 in pre-market trading after it provides weak earnings guidance for the first quarter and full-year 2024.

"The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year," said Doug McMillon, President and CEO.

For the fourth quarter, consolidated net income attributable to Walmart for the quarter was $6.28 billion or $2.32 per share, sharply higher than $3.56 billion or $1.28 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $1.71 per share, compared to $1.53 per share in the year-ago quarter.

On average, 32 analysts polled by Thomson Reuters expected the company to report earnings of $1.51 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and membership and other income, grew 7.3 percent to $164.05 billion from $152.87 billion in the same quarter last year. Revenues increased 7.9 percent to $164.97 billion in constant currency. Analysts were looking for revenues of $159.76 billion for the quarter.

Net sales grew 7.4 percent to $162.74 billion, while Membership and other income decreased 3.0 percent to $1.31 billion from last year. Consolidated U.S. comp sales, without fuel, increased 8.8 percent.

Walmart U.S. comp sales, without fuel, increased 8.3 percent and net sales rose 8.0 percent to $113.74 billion. Walmart U.S. eCommerce sales grew 17 percent.

Sam's Club comp sales, without fuel, increased 12.2 percent and net sales also grew 11.3 percent to $21.42 billion from last year. Membership income increased 7.1 percent.

Net sales at Walmart International grew 2.1 percent to $27.58 billion, with strength in Walmex, China and Canada. Sales also increased 5.5 percent to $28.5 billion in constant currency.

Consolidated operating expenses as a percentage of net sales decreased 44 basis points primarily due to strong sales growth and lower Covid-related costs.

Looking ahead to the first quarter, the company expects adjusted earnings in a range of $1.25 to $1.30 per share on consolidated net sales growth of 4.5 to 5.0 percent in constant currency. Analysts expect earnings of $1.36 per share on a revenue growth of 3.6 percent to $146.70 billion for the quarter.

For fiscal 2024, the company now projects adjusted earnings in a range of $5.90 to $6.05 per share on consolidated net sales growth of 2.5 to 3.0 percent in constant currency.

The Street is looking for earnings of $6.50 per share on a revenue growth of 3.3 percent to $626.71 billion for the year.

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