Walmart

Walmart’s (WMT) alternative businesses have the potential to contribute nearly one-third of its profit over the next three years and transform the company from a global retailer into a “versatile, technology-driven behemoth,” UBS said in a note Monday. The company’s strategic diversification into areas like advertising, marketplace fees, fulfillment services, membership income, and data analytics monetization will continue to reshape Walmart’s profit and loss as the company gains scale in these businesses and evolves into more than a retailer, according to the note. UBS estimated that about 20% of Walmart’s 2023 earnings before interest and tax came from these new high margin alternative revenue streams and the figure could grow to 31% of the company’s profits in 2026. “This makes [Walmart’s] long-term investment case compelling,” UBS said in its note. The firm has a buy rating on the company’s stock with a 12-month price target of $63.

Walmart Inc. (WMT) and Vizio Corp. (VZIO) said late Wednesday they are going to refile paperwork related to their proposed merger after the retail giant held “informal” antitrust talks with the Federal Trade Commission and the Justice Department. Walmart in a securities filing said it notified the agencies that it will withdraw and refile a premerger notification “in order to give the antitrust agencies additional time to review the proposed transaction.” The notification was originally sent on Feb. 26, and the refile is expected on Friday. Shares of Walmart were down a fraction in the extended session Wednesday, and shares of Vizio fell 1%.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: WMT shares began trading at a 3-for-1 split-adjusted price today. Accordingly, we adjust our 12-month target to $65 from $195, 27x our FY 2025 EPS view (adjusted to $2.41 from $7.23; FY 2026 adjusted to $2.60 from $7.79). Many things are working for WMT right now. In-store sales are strong as consumers are shopping for lower-priced groceries more frequently (store remodels are also lifting traffic). WMT is gaining share with upper-income households, which is helping grow its subscription program (Walmart+). Online sales are strong, as global e-commerce sales exceeded $100 billion in FY 2023, up from $82 billion in FY 2022. The growth in online sales is fueling WMT’s higher-margin ad business (global ad sales were $3.4 billion in FY 2023, up from $2.7 billion a year

Walmart’s (WMT) “strong momentum” is expected to continue into fiscal 2025 following its better-than-projected fiscal Q4 results, BofA Securities said. On Tuesday, the retail giant reported fiscal Q4 adjusted earnings of $1.80 per share on sales of $171.91 billion, both topping market expectations. “While we see continued softness in discretionary, we see support for general [merchandise] share gains to continue from initiatives [including] store remodels, online SKU expansion and strong pickup/delivery execution,” BofA analyst Robert Ohmes said in a note e-mailed Wednesday. BofA projects Walmart’s fiscal Q1 adjusted EPS at $1.53 and full-year adjusted EPS at $7, according to the note. The BofA analysts increased their price objective on the retailer’s stock to $200 from $190 while reiterating their buy rating.

Walmart (NYSE:WMT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/21/2024 16.68% Telsey Advisory Group $185 → $205 Maintains Outperform 02/16/2024 -0.4% Stifel $169 → $175 Maintains Hold 02/14/2024 5.29% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 02/12/2024 5.29% Oppenheimer $175 → $185 Maintains Outperform 11/17/2023 0.74% Evercore ISI Group $187 → $177 Maintains Outperform 11/17/2023 -3.81% Stifel $171 → $169 Maintains Hold 11/17/2023 -4.38% RBC Capital → $168 Reiterates Outperform → Outperform 11/17/2023 -3.24% Truist Securities $168 → $170 Maintains Hold 11/17/2023 -0.4% BMO Capital $180 → $175 Maintains Outperform 11/17/2023 -4.38% Morgan Stanley $170 → $168 Maintains Overweight 11/17/2023 5.29% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 11/14/2023 10.98% Jefferies $190 → $195 Maintains Buy 11/13/2023 -2.68% Stifel $169 → $171 Maintains Hold 11/13/2023 8.14% Stephens & Co. $185 → $190 Maintains Overweight 10/25/2023 11.55% Tigress

Goldman Sachs Raises Walmart (NYSE: WMT) Price Target to $193 From $180, Maintains Buy Rating。

The following is a summary of the Walmart Inc. (WMT) Q4 2023 Earnings Call Transcript: Financial Performance: Walmart recorded a Q4 sales growth of 4.9% and an adjusted operating profit growth of 10.9% in constant currency. Inventory levels are improved and down compared to last year, and private brand penetration has increased in several countries. They achieved global e-commerce sales of $100 billion for the first time ever. Walmart’s year-end retail prices on like-for-like items inflated by about 80 basis points. The company reported significant growth in digital penetration in its China business, from 4% in 2019 to 48% currently. Gross margins expanded by 39 basis points, attributed to lower markdowns and effective inventory management. The company raised dividends by 9% and anticipates growing sales by 3% to 4% and operating income by 4% to 6% in FY 2025. Business Progress: Walmart plans to remodel 928 stores and clubs globally

Walmart (NYSE:WMT) reported quarterly earnings of $1.80 per share which beat the analyst consensus estimate of $1.65 by 9.09 percent. The company reported quarterly sales of $173.40 billion which beat the analyst consensus estimate of $170.71 billion by 1.58 percent. This is a 5.70 percent increase over sales of $164.05 billion the same period last year.

Walmart Sees Q1 Consolidated Net Sales Up 4-5% (Leap Year Estimated to Benefit Approximately 100bps), Sees FY24 Consolidated Net Sales Up 3-4%

Walmart Sees Q1 2025 Adj. EPS $1.48-$1.56 On Pre-Split Basis (Consensus $1.48), Sees Adj. EPS $0.52 On Post-Split Basis; Sees FY25 Adj. EPS $6.70-$7.12 Pre-Split (Consensus $6.55), Sees Adj. EPS $2.23-$2.37 Post-Split.

Walmart CFO Said We Saw Better Than Expected Holiday Sales, Including 2 Record Breaking Volume Days Leading Up To Christmas -Conf Call.

Walmart Inc (NYSE:WMT) reported fourth-quarter FY24 net sales growth of 5.7% year-over-year to $173.39 billion, beating the consensus of $170.71 billion. Adjusted EPS was $1.80, beating the consensus of $1.65. The stock price gained after the results. Net sales from Walmart U.S. increased 3.4% Y/Y, Walmart International rose 17.6%, and Sam’s Club U.S. was up 2.0%. Walmart’s total U.S. comp sales (ex-fuel) grew by 4.0%, with growth in eCommerce of 17%, led by pickup & delivery. Walmart U.S. Operating income rose 12.9% Y/Y to $6.1 billion, and the margin expanded by 44 bps to 5.2%. Consolidated operating income rose by $1.7 billion, or 30.4%; adjusted operating income up 13.2%, positively affected by currency and LIFO of 2.3% and 1.0%, respectively. The consolidated gross margin rate was up 39 bps, positively affected by a slight improvement for Walmart U.S. The company held $9.9 billion in cash and equivalents. M&A: Walmart agrees to buy VIZIO