Retailing giant Walmart (NYSE:WMT) gained in pre-market trading after the company posted strong fourth-quarter results. The retailer posted revenues of $173.4 billion, up 5.7% year-over-year and above consensus estimates of $170.8 billion. Walmart’s e-commerce sales soared globally by 23% and surpassed $100 billion in FY24. Comparable sales increased by 4% in the U.S. in Q4.
The company reported adjusted earnings of $1.80 per share in Q4 compared to $1.71 per share in the same period last year, beating Street estimates of $1.64 per share.
The retailer also raised its annual dividend for FY25 to $2.49 per share or $0.83 per share post-stock split, an increase of 9% year-over-year.
In the first quarter of FY25, Walmart expects its net sales to increase in the range of 4% to 5%, while adjusted earnings are likely to be between $0.49 and $0.52 per share post-stock split. The retailer announced a 3-for-1 stock split late last month.
In FY25, the company expects its sales to increase in the range of 3% to 4%, while adjusted earnings are likely to be between $2.23 and $2.37 per share post-stock split.
In a separate development, Walmart is buying smart television manufacturer Vizio (VZIO) for $2.3 billion in cash. Shares of Vizio soared in pre-market trading following the news.
Is Walmart a Good Stock to Buy Now?
Analysts remain bullish about WMT stock with a Strong Buy consensus rating based on 16 Buys and two Holds. WMT stock has gained by more than 15% over the past year, and the average WMT price target of $185.12 implies an upside potential of 8.66% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
