Walmart

Walmart is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Walmart reported fiscal fourth-quarter profit that beat expectations, and announced an agreement to buy Vizio Holding in a deal valued at $2.3 billion. Net income for the quarter to Jan. 31 fell to $5.49 billion, or $2.03 a share, from $6.28 billion, or $2.32 a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of $1.80 beat the FactSet consensus of $1.64. Dow Jones & Co. owns Factiva.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $195 from $182, 27x our FY 25 (Jan.) EPS of $7.23 (down from $7.28; FY 26 initiated at $7.79) vs. the 24x historical average. F4Q (Jan-Q) adj-EPS of $1.80 (+5% Y/Y) smashed the $1.65 consensus. Walmart U.S. comp sales grew a solid 4.0% (+4.3% transactions; -0.3% average ticket), as consumers are shopping more frequently, but spending less per trip. Operating margins grew 30 bps Y/Y to 4.2%, as strong sales and good inventory management led to lower markdowns (Walmart U.S. inventory down 4.5% Y/Y). The outlook was a little cautious, but WMT tends to bake in some conservatism to start the year. Walmart agreed to acquire Vizio for $2.3B, which should help accelerate growth in its burgeoning global ads business (valued

Walmart (WMT) is expected to post “solid” fiscal fourth-quarter results and gain further market share in the grocery, health and wellness, and e-commerce categories, UBS Securities said Monday. The retail giant is scheduled to report fourth-quarter results Feb. 20. UBS raised its adjusted earnings outlook to $1.70 per share from $1.62 and expects revenue to grow 4.4% year over year to $171.28 billion. Wall Street is looking for adjusted EPS of $1.63 on revenue of $170.31 billion, according to the brokerage. “We believe (Walmart) generated good momentum in (the fourth quarter) despite the topsy-turvy spending backdrop throughout the period,” UBS analysts Michael Lasser, Zeyn Burak and Mark Carden said in a note. The company’s latest quarterly results and guidance “should provide more optimism on the sustainability of its recent share gains and its future potential,” the analysts said. UBS increased its US fourth-quarter same-store sales estimate to 3% from 2.5%.

Walmart (NYSE: WMT) generated a good momentum in the 4Q despite the confusing spending backdrop experienced during the period, so its upcoming 4Q print and FY outlook should provide more optimism on the sustainability of its recent share gains, UBS analysts say in a research note. The biggest U.S. retailer should benefit from its defensive characteristics and idiosyncratic sales and profit drivers as it expands its marketplace, analysts say. “We think the company may provide more detail on its alternative profit story that could keep the stock’s valuation trading at a premium,” analysts add.

Walmart (NYSE:WMT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 3.09% Stifel $169 → $175 Maintains Hold 02/14/2024 8.98% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 02/12/2024 8.98% Oppenheimer $175 → $185 Maintains Outperform 11/17/2023 4.26% Evercore ISI Group $187 → $177 Maintains Outperform 11/17/2023 -0.45% Stifel $171 → $169 Maintains Hold 11/17/2023 -1.04% RBC Capital → $168 Reiterates Outperform → Outperform 11/17/2023 0.14% Truist Securities $168 → $170 Maintains Hold 11/17/2023 3.09% BMO Capital $180 → $175 Maintains Outperform 11/17/2023 -1.04% Morgan Stanley $170 → $168 Maintains Overweight 11/17/2023 8.98% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 11/14/2023 14.87% Jefferies $190 → $195 Maintains Buy 11/13/2023 0.73% Stifel $169 → $171 Maintains Hold 11/13/2023 11.92% Stephens & Co. $185 → $190 Maintains Overweight 10/25/2023 15.46% Tigress Financial $182 → $196 Maintains Buy 09/27/2023 23.7% Piper Sandler

Walmart (NYSE:WMT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/14/2024 9.3% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 02/12/2024 9.3% Oppenheimer $175 → $185 Maintains Outperform 11/17/2023 4.57% Evercore ISI Group $187 → $177 Maintains Outperform 11/17/2023 -0.15% Stifel $171 → $169 Maintains Hold 11/17/2023 -0.74% RBC Capital → $168 Reiterates Outperform → Outperform 11/17/2023 0.44% Truist Securities $168 → $170 Maintains Hold 11/17/2023 3.39% BMO Capital $180 → $175 Maintains Outperform 11/17/2023 -0.74% Morgan Stanley $170 → $168 Maintains Overweight 11/17/2023 9.3% Telsey Advisory Group → $185 Reiterates Outperform → Outperform 11/14/2023 15.21% Jefferies $190 → $195 Maintains Buy 11/13/2023 1.03% Stifel $169 → $171 Maintains Hold 11/13/2023 12.25% Stephens & Co. $185 → $190 Maintains Overweight 10/25/2023 15.8% Tigress Financial $182 → $196 Maintains Buy 09/27/2023 24.07% Piper Sandler $210 → $210 Reiterates Overweight → Overweight 09/26/2023

A deal between Walmart and smart television-manufacturer Vizio has strategic merits for both sides, say JPMorgan analysts Cory Carpenter and Christopher Horvers in a research note. WSJ on Tuesday reported the retail giant is in talks to buy Vizio for more than $2 billion, a move that would give Walmart more places where it can sell ads and pitch shoppers on goods. The analysts say the deal could accelerate Vizio’s SmartCast scale as it could switch Walmart’s house TV brand from Roku’s operating system to Vizio’s. Vizio’s SmartCast operating system could also accelerate Walmart’s push into alternative revenue streams, specifically advertising.

Walmart’s (WMT) fiscal Q4 results are expected to deliver adjusted EPS of $1.61 and growth of 2% for US comps, both “slightly below” consensus estimates, BofA Securities said Wednesday in a report. Still, Walmart is “well-positioned for share gains and improving profitability both near and long-term,” BofA said. The company’s results are due on Tuesday. BofA’s fiscal Q4 comp estimates represent a deceleration compared with fiscal Q3’s growth of 4.9% due to “moderating grocery inflation” and “likely continued softness in general merchandise,” the report said. Strong observed sales and transactions in fiscal Q4 “according to Bloomberg Second Measure credit and debit card data implies potential for upside,” the report said. BofA expects “grocery share gains” and “trade-down” to back Walmart’s store and online transactions as “consumers continue to manage grocery inflation (25%+ versus pre-COVID), the reduction in SNAP benefits and the return of student loan repayments.” The retailer’s gross margin

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: WMT announced a 3:1 stock split (effective February 26). While stock splits are purely cosmetic (i.e., no impact to fundamentals), they are perceived as a shareholder-friendly move and a sign of confidence. In separate news releases, WMT announced increases to store manager pay (from $117K/year to $128K/year, with bonuses up to 200% of base salary) and plans to build or convert more than 150 stores over the next five years. WMT will continue to remodel stores (650 store remodels planned over the next year) to its Store of the Future concept (i.e., improved layouts, expanded product selection, and innovative technology). We visited a few remodeled stores and were particularly grabbed by the new displays and features, wider aisles, and brighter lighting. Store remodels should help drive traffic/volume

Walmart’s plan to ramp up store openings could boost the stock’s multiple, according to Jefferies analysts Corey Tarlowe and Randal Konik. The big-box retailer says that it will open or expand 150 new stores in the U.S. in the next five years. The analysts say in a research note that over the past 25 years, store count accelerations have correlated with the stock increasing its earnings multiple, including from 1999 to 2001 and from 2012 to 2015, with some exceptions. They view the move as helping the company’s growth prospects. Shares rise 0.4% to $166.32.

By Sarah Nassauer It has been a while since Walmart felt it was too small. The retail giant plans to open or expand 150 stores in the U.S. over the next five years, reversing a strategy that had focused on keeping its store count flat. Most stores targeted in the project will be new locations. Walmart in 2016 began to slow new store openings as it worked to fend off Amazon.com, saying it aimed to invest in online growth, along with improving existing stores. By the end of 2019 that trickle slowed to a near halt as existing real-estate projects wrapped up. It hasn’t opened a new U.S. supercenter in about two years. In a staff memo sent Wednesday, Walmart said it would open around 12 new stores this year and convert one smaller location to a Walmart Supercenter, the large stores that sell everything from lettuce to vacuums. Over

Walmart Announces 3-for-1 Stock Split。