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Key Takeaways
- Walmart shares rose more than 5% early Tuesday, as the retailer posts higher-than-forecast earnings and sales for its fiscal fourth quarter.
- Walmart said it expects consolidated net sales to rise 4% to 5% in its fiscal first quarter.
- The retailer also announced plans to buy smart TV maker Vizio for $2.3 billion as part of moves to boost its advertising business.
Walmart Inc. (WMT) reported better-than-forecast results for its fiscal fourth quarter, as the big-box retailer benefited from consumers watching their spending amid still elevated inflation levels.
Shares in the company, which also announced a $2.3 billion deal to buy smart-television maker Vizio (VZIO), rose more than 5% in early trading Tuesday. Vizio shares jumped 15% higher before the bell.
Walmart’s net income fell to $5.49 billion, or $1.80 per share, above analyst projections of $4.36 billion or $1.61 per share. Sales rose 6% to $173.39 billion for the three months ending January—when the company’s fiscal year renews. The company said it expects consolidated net sales to rise 4% to 5% in its fiscal first quarter.
Walmart is buying Vizio for $11.50 per share in cash, to expand its advertising business. The acquisition will provide the retailer with “a profitable advertising business that is rapidly scaling,” Seth Dallaire, executive vice president and chief revenue officer of Walmart U.S. said in a statement.
| Q4 Fiscal 2024 | Analyst Estimates for Q4 Fiscal 2024 | Q4 Fiscal 2023 | Year-over-year % change | |
|---|---|---|---|---|
| Revenue | $173.39 billion | $170.33 billion | $164.05 billion | 6% |
| Earnings Per Share | $1.80 | $1.61 | $2.32 | -22% |
| Net Income | $5.49 billion | $4.36 billion | $6.28 billion | -12% |
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