Latest news with #KrisztinaKatai
Yahoo
20-02-2025
- Business
- Yahoo
Walmart stock drops as it posts Q4 earnings beat, cautious 2025 guidance
Walmart (WMT) posted another strong quarter as inflation-weary shoppers searched for value. Revenue and adjusted earnings per share came in higher than Wall Street expected in the retailer's fourth quarter and fiscal 2025 results, released on Thursday before the market open. Quarterly revenue increased 5.3% year over year to $182.6 billion, while adjusted earnings per share was up 10% to $0.66. However, its stock dropped 5% in premarket trading, as Walmart's fiscal 2026 guidance disappointed investors. Prior to earnings, its shares have soared over 75% in the past year, compared to a 23% gain for the S&P 500 (^GSPC) and a 13% drop at rival Target (TGT). Same-store sales for Walmart US increased 4.6% in the quarter. The growth was boosted by the retailer attracting more higher-income shoppers with its emphasis on value and convenience. Its sales at Walmart US e-commerce jumped 20% year over year, fueled by in-store pickup and delivery, as well its advertising platform and online marketplace. Strong holiday sales also drove the quarter. "We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times," CEO Doug McMillon said in the release, "We're gaining market share, our top line is healthy, and we're in great shape with inventory." Its subscription service, Walmart+, saw double-digit growth in the quarter, while membership and other income increased 33%. The retailer's US grocery business, which makes up 60% of total sales, saw mid-single digit same-store sales growth, boosted by increased foot traffic and e-commerce. Discretionary items, like toys, home decor, and fashion, which have been lagging in recent years, saw low single digit growth in the quarter. For the full year, Walmart surpassed Wall Street's expectations. Net sales increased 5.6% to $684.2 billion. However, "investors will focus less on the quarter and more on the outlook for 2025, and specifically overlook what we expect to be an initial conservative, and below consensus, guide for the fiscal year," Deutsche Bank analyst Krisztina Katai told clients in a note prior to earnings. For its fiscal year 2026, the company put forth a conservative guidance, as it has done for the last two years. It projects to increase net sales between 3% to 4%. "We've been operating in a highly dynamic backdrop for several years, and we expect this year to be no different. Our outlook assumes a relatively stable macroeconomic environment, but acknowledges that there are still uncertainties related to consumer behavior and global economic and geopolitical conditions," CFO John David Rainey said on the earnings call. Here's what Walmart reported for its fourth quarter results versus Bloomberg consensus estimates: Revenue: $182.6 billion, versus $180.21 billion Adjusted earnings per share: $0.66, versus $0.65 Walmart US same-store sales growth: 4.6%, versus 4.36% Foot traffic growth: 2.8%, versus 2.67% Ticket growth: 1.8%, versus 1.96% E-commerce sales growth: 2.9%, versus 2.88% Sam's Club US same-store sales growth: 6.8%, versus 4.99% Here's what Walmart reported for its fiscal year 2025 results, versus Bloomberg consensus estimates: Revenue: $684.2, versus $680.70 billion Adjusted earnings per share: $2.51, versus $2.49 Walmart US same-store sales growth: 4.5%, versus 4.62% Sam's Club US same-store sales growth: 5.9%, versus 5.35% — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
Yahoo
20-02-2025
- Business
- Yahoo
Walmart posts Q4 earnings beat as it gains high-income shoppers, but guides cautiously for 2025
Walmart (WMT) posted another strong quarter as inflation-weary shoppers searched for value. Revenue and adjusted earnings per share came in higher than Wall Street expected in the retailer's fourth quarter and fiscal 2025 results, released on Thursday before the market open. Quarterly revenue increased 5.3% year over year to $182.6 billion, while adjusted earnings per share was up 10% to $0.66. Walmart stock has soared over 75% in the past year, compared to a 23% gain for the S&P 500 (^GSPC) and a 13% drop at rival Target (TGT). Same-store sales for Walmart US increased 4.6% in the quarter. The growth was boosted by the retailer attracting more higher-income shoppers with its emphasis on value and convenience. Its sales at Walmart US e-commerce jumped 20% year over year, fueled by in-store pickup and delivery, as well its advertising platform and online marketplace. Strong holiday sales also drove the quarter. "We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times," CEO Doug McMillon said in the release, "We're gaining market share, our top line is healthy, and we're in great shape with inventory." Its subscription service, Walmart+, saw double-digit growth in the quarter, while membership and other income increased 33%. The retailer's US grocery business, which makes up 60% of total sales, saw mid-single digit same-store sales growth, boosted by increased foot traffic and e-commerce. Discretionary items, like toys, home decor, and fashion, which have been lagging in recent years, saw low single digit growth in the quarter. For the full year, Walmart surpassed Wall Street's expectations. Net sales increased 5.6% to $684.2 billion. However, "investors will focus less on the quarter and more on the outlook for 2025, and specifically overlook what we expect to be an initial conservative, and below consensus, guide for the fiscal year," Deutsche Bank analyst Krisztina Katai told clients in a note prior to earnings. For its fiscal year 2026, the company put forth a conservative guidance, as it has done for the last two years. It projects to increase net sales between 3% to 4%. "We've been operating in a highly dynamic backdrop for several years, and we expect this year to be no different. Our outlook assumes a relatively stable macroeconomic environment, but acknowledges that there are still uncertainties related to consumer behavior and global economic and geopolitical conditions," CFO John David Rainey said on the earnings call. Here's what Walmart reported for its fourth quarter results versus Bloomberg consensus estimates: Revenue: $182.6 billion, versus $180.21 billion Adjusted earnings per share: $0.66, versus $0.65 Walmart US same-store sales growth: 4.6%, versus 4.36% Foot traffic growth: 2.8%, versus 2.67% Ticket growth: 1.8%, versus 1.96% E-commerce sales growth: 2.9%, versus 2.88% Sam's Club US same-store sales growth: 6.8%, versus 4.99% Here's what Walmart reported for its fiscal year 2025 results, versus Bloomberg consensus estimates: Revenue: $684.2, versus $680.70 billion Adjusted earnings per share: $2.51, versus $2.49 Walmart US same-store sales growth: 4.5%, versus 4.62% Sam's Club US same-store sales growth: 5.9%, versus 5.35% — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Walmart posts Q4 profit beat as it gains high-income shoppers, but guides cautiously for 2025
Walmart (WMT) has posted another strong quarter as inflation-weary shoppers searched for value. Revenue and adjusted earnings per share came in higher than Wall Street expected in the retailer's fourth quarter and fiscal 2025 results, released on Thursday before the market open. Quarterly revenue increased 5.3% to $182.6 billion, while adjusted EPS was up 10% to $0.66, compared with a year ago. Same-store sales for Walmart US increased 4.6% in the quarter, slightly lower than expected. The quarter was boosted by the retailer's success in attracting more higher-income shoppers yet again, with its emphasis on value and convenience. Its Walmart US e-commerce business saw a 20% increase in sales, fueled by in-store pickup and delivery, as well its advertising platform and online marketplace. Strong seasonal sales in the holiday shopping season, which was five days less, also boosted the quarter. "We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times," CEO Doug McMillon said in the release, "We're gaining market share, our top line is healthy, and we're in great shape with inventory." Its the subscription service, Walmart+, saw double-digit growth in the quarter, while membership and other income increased 33%. More customers paid up for expedited delivery, too. The retailer's US grocery business, which makes up 60% of total sales, saw mid-single digit same-store sales growth, boosted by increased foot traffic and e-commerce. Its health and wellness grew mid-teens, from an increase in pharmacy scripts, over-the-counter, same-day pharmacy delivery and sales of GLP-1, which contributed roughly 100 basis points. Discretionary items, like toys, home decor and fashion, which have been lagging in recent years, saw low single digit growth in the holiday quarter. For the full year, Walmart surpassed Wall Street's expectations, and its own guidance, for net sales which it expected to increase in the range of 4.8% and 5.1% for the fiscal year. Net sales increased 5.6% for the fiscal year to $684.2 billion. However, "investors will focus less on the quarter and more on the outlook for 2025, and specifically overlook what we expect to be an initial conservative, and below consensus, guide for the fiscal year," Deutsche Bank analyst Krisztina Katai told clients in a note. For its fiscal year 2026, the company did put forth a conservative guidance, as its done for the last two years, with expectations to increase net sales between the range to 3% to 4%. Here's what Walmart reported for its fourth quarter results versus Bloomberg consensus estimates: Revenue: $182.6 billion, versus $180.21 billion Adjusted earnings per share: $0.66, versus $0.65 Walmart US same-store sales growth: 4.6%, versus 4.36% Foot traffic growth: 2.8%, versus 2.67% Ticket growth: 1.8%, versus 1.96% E-commerce sales growth: 2.9%, versus 2.88% Sam's Club US same-store sales growth: 6.8%, versus 4.99% Here's what Walmart reported for its fiscal year 2025 results, versus Bloomberg consensus estimates: Revenue: $684.2, versus $680.70 billion Adjusted earnings per share: $2.51, versus $2.49 Walmart US same-store sales growth: 4.5%, versus 4.62% Sam's Club US same-store sales growth: 5.9%, versus 5.35% Walmart stock has soared over 75% in the past year, compared to a 23% gain for the S&P 500 (^GSPC) and a 13% drop at rival Target (TGT). Jefferies analyst Corey Tarlowe told Yahoo Finance there is still room to run for the stock. "If you aggregate all the potential benefits that Walmart is likely to see from higher-margin revenue streams like advertising and fulfillment services and the addition of automation and AI into their business, all of that should really continue to benefit the P&L," he said. Joe Feldman of Telsey Advisory Group told clients in a note the firm expects "Walmart to remain a leader and market share gainer ... given its defensive product mix, strong focus on the customer, ability to leverage talent and technology, and robust financial flexibility." It could also have a leg up in the environment in which President Trump has put an avalanche of potential tariffs on the table. Walmart touts that two-thirds of its annual product spend is made, grown, or assembled in the US, giving it lower exposure to imports than other companies. However, if costs rise, it will still have to pass along higher prices to consumers. Its value gap, particularly within its private labels, will help blunt the impact. For example, its Great Value brand is now about 50% cheaper than name-brand competitors, per Tarlowe. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Walmart expected to win over more high-income consumers as it reports fourth quarter results
Walmart (WMT) is expected to post another strong quarter as inflation-weary shoppers continue to search for value. The retail giant will post its fourth quarter and fiscal 2025 results on Thursday before the market open. Revenue and adjusted earnings per share are expected to increase to $180.21 billion and $0.65, respectively. Same-store sales in the US are estimated to jump 4.66% for the quarter. Though "expectations are high," Jefferies analyst Corey Tarlowe told Yahoo Finance Walmart will likely deliver "above expectations" as it continues to gain higher-income shoppers with its emphasis on value and convenience. "This convenience aspect has allowed [it] to acquire and retain these higher-income customers, many of whom are taking advantage now of the benefits of [the subscription service] Walmart+," he said. Deutsche Bank analyst Krisztina Katai told clients in a note that she expects "record-high levels of member penetration" for Walmart+ in the second half of 2024 and into January 2025. The improvement of discretionary purchases, as well as expansion of its online marketplace, could also be tailwinds, she said. For the full year, Wall Street expects revenue to increase roughly 5% to $680.7 billion. In its previous quarterly report, Walmart raised its guidance for fiscal year 2025 for the third time. Net sales were expected to grow between 4.8% and 5.1% for the fiscal year. Previously, Walmart guided to 3.75% to 4.75% sales growth. "Investors will focus less on the quarter and more on the outlook for 2025, and specifically overlook what we expect to be an initial conservative, and below consensus, guide for the fiscal year," Katai said. Here's what Walmart is expected to post for its fourth quarter results, per Bloomberg consensus estimates, compared to the previous year: Revenue: $180.21 billion, versus $173.39 billion Adjusted earnings per share: $0.65, versus $0.60 Overall US same-store sales growth: 4.66%, versus 3.9% Walmart US same-store sales growth: 4.36%, versus 4% Foot traffic growth: 2.67%, versus 4.3% Ticket growth: 1.96%, versus -0.3% E-commerce sales growth: 2.88%, versus 2.4% Sam's Club US same-store sales growth: 4.99%, versus 3.1% Here's what Walmart is expected to post for its fiscal year 2025 results, per Bloomberg consensus estimates, compared to the previous year: Revenue: $680.70 billion, versus $648.13 billion Adjusted earnings per share: $2.49, versus $2.33 Overall US same-store sales growth: 4.63%, versus 5.5% Walmart US same-store sales growth: 4.62%, versus 5.6% Sam's Club US same-store sales growth: 5.35%, versus 4.8% Walmart stock has soared over 75% in the past year, compared to a 23% gain for the S&P 500 (^GSPC) and a 13% drop at rival Target (TGT). Tarlowe said there is still room to run for the stock. "If you aggregate all the potential benefits that Walmart is likely to see from higher-margin revenue streams like advertising and fulfillment services and the addition of automation and AI into their business, all of that should really continue to benefit the P&L," he said. Joe Feldman of Telsey Advisory Group told clients in a note the firm expects "Walmart to remain a leader and market share gainer ... given its defensive product mix, strong focus on the customer, ability to leverage talent and technology, and robust financial flexibility." It could also have a leg up in the environment in which President Trump has put an avalanche of potential tariffs on the table. Walmart touts that two-thirds of its annual product spend is made, grown, or assembled in the US, giving it lower exposure to imports than other companies. However, if costs rise, it will still have to pass along higher prices to consumers. Its value gap, particularly within its private labels, will help blunt the impact. For example, its Great Value brand is now about 50% cheaper than name-brand competitors, per Tarlowe. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
