Walmart (NYSE:WMT)
Walmart’s (NYSE:WMT) stock price went down after the company reported better-than-expected profitability for the Christmas quarter but provided cautious forecasts for the year to come. During the year in question, revenue increased by 7.3% to reach 164.1 billion dollars.
The company said its overall U.S. comparable sales increased by 8.3% in the second quarter, above the consensus expectation of a 6.2% growth and the guideline mark of +3.0%. Compared to the same period two years earlier, comparable sales in the United States had a 13.9% increase. During the holiday quarter, there was a 1.8% increase in transactions, while the average ticket price saw a 6.3% increase. Sam’s Club locations in the United States had an increase in comparable sales of 12.2%, driven by a rise in transactions of 6.7% and an increase in average tickets of 5.2%. The overall sales at Walmart International rose by 2.1% to reach $27.6 billion.
The Bentonville company reported market share improvements in the grocery industry in the United States during the quarter. Still, it also cautioned that customers are under significant amounts of pressure.
Strong sales growth and decreased COVID-related expenses were the primary contributors to the drop in the consolidated gross profit rate, which was somewhat offset by reorganization and restructuring charges incurred in the International business.
Income from operations after adjustments increased by 6.9% to reach $6.4 billion.
CEO update: “We couldn’t be more thrilled with how things are going. The team finished the year well by delivering a solid fourth quarter. Our results in the past two quarters reflect that they worked fast and decisively to solve the inventory and cost difficulties we had in the previous year. Throughout the third quarter, we built momentum, and that trend continues. This new fiscal year will get off to a good start for us.”
In constant currency, Walmart’s stock anticipates consolidated net sales growth of between 2.5% and 3.0%. Comparable sales at Walmart in the United States are anticipated to rise by 2.0% to 2.50% (excluding gasoline). Comparable sales at Sam’s Club in the United States are expected to rise by around 5%. (ex-fuel). Compared to the average estimate of $6.51, analysts predict that EPS will fall somewhere in the range of $5.90 to $6.05.
Walmart stock was trading at $140.88 before the market opening on Tuesday, reflecting a decrease of 3.89%. Target and Costco saw their share prices drop by 1.25% and 2.10%, respectively.
Featured Image: Freepik @ prostooleh
