Walmart share price up 4% after Q4 results revenue beat
Walmart stock rises after a better-than-expected earnings report.
|Earnings per share (EPS)||$1.41|
|Net income||$3.69 billion|
Walmart earnings per share were $1.41 and surpassed expectations of $1.33. Walmart revenue topped $138.79 billion, slightly more than the predicted $138.65 billion. The retailer’s net income was $3.69 billion with better-than-expected holiday purchases. The US same-store sales were up 4.2%, higher than the projected 3.2%.
Online sales jumped by 43% and was even able to compete with online retail giant Amazon. Walmart achieved the e-commerce sales by acquiring Art.com and women’s intimate apparel line Bare Necessities. Chief executive officer, (CEO), Doug McMillion, wrote a statement about the growth in digital transactions.
‘Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share. We're excited about the work we're doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear — we'll be there when, where and how they want to shop and deliver new, convenient experiences that are uniquely Walmart,’ said McMillion in a statement.
McMillon also noted in a call to investors that Walmart’s Q4 results also increased because of the retailer’s grocery pickup and delivery service.
‘Our fulfillment shipping costs are improving as we continue to enhance our [online] assortment. Repeat visits should increase and contribute to improving profitability,’ said McMillon.
What do Walmart’s Q4 results mean for their share price?
Walmart’s Q4 results have meant positive news for its share price. Walmart’s share price has increased 3% since Walmart’s earnings report was released. The retailer’s better-than-expected results could help improve its current share price of $102.09.
How do Walmart’s Q4 results compare to other retailers?
Walmart’s Q4 results surged just as other retailers, like Target and Amazon did in their revenue reports. All the retailers had strong online sales and beat earnings estimates.
What is Walmart’s dividend forecast?
Walmart‘s dividend forecast is very optimistic as the corporation predicted sales growth at 3%. The company also expects net sales to rise 5% and same-store purchases to climb by 3%. The only weak guidance was when Walmart projected 35% sales growth, a decline from 2018. Chief financial officer, (CFO), Brett Briggs, had faith in high consumer confidence for Walmart’s Q1 2019.
‘To us, the consumer looks like they're in pretty good shape. We're always monitoring the consumer and are ready to act if things change, but we feel our guidance is good for the next year and our business model works well in most environments,’ said Briggs.
Walmart’s earnings report is a bright spot among the volatility of the US stock market. Brick-and-mortar retailers have proven that they can hold their own in the age of Amazon.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets