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Walmart Reports Fourth-Quarter Earnings, Revenue Topping Forecasts as Comp Sales, E-Commerce Jump

9:14 AM, Feb 19, 2019 — Walmart (WMT) on Tuesday reported fourth-quarter earnings and revenue that both topped forecasts as comparable sales and e-commerce surged.

The retailer reported earnings of $1.41 a share, topping the consensus on Capital IQ for $1.33 a share. Revenue came in at $138.8 billion, beating forecasts for $137.6 billion. Shares were up 3.7% in pre-market trading on Tuesday.

Comparable sales in the quarter grew 4.2% and e-commerce sales jumped 43%, the retailer said. US comparable sales rose 3.6% and e-commerce sales in the country jumped 40%. Sam’s Club comp sales rose 3.3% and its e-commerce sales grew 21%.

“Walmart US e-commerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on,” the company said.

For the full year, revenue came in at $514.4 billion, an increase of 2.8%. Excluding currency, total revenue rose 3% to $515.1 billion. Operating cash flow was reported at $27.8 billion and $13.5 billion was returned to shareholders through dividends and share repurchases.

Fiscal 2020 earnings are expected to decline by low single-digits versus the previous year, the Walmart said. They may, however, increase by the low- to mid-single-digit percentage range when excluding Flipkart, which it acquired in August.

Walmart reiterated its guidance originally released on Oct. 16 for comp sales growth of 2.5% to 3%, excluding fuel, and e-commerce sales growth of around 35%, the company said. Consolidated net-sales growth is forecast at around 3% in constant currency, but should be positively affected by the Flipkart acquisition and negatively impacted by deconsolidation of Walmart Brazil and a planned reduction in tobacco sales at Sam’s Club.

Its effective tax rate is pegged from 26.5% to 27.5%. Capital expenditures are projected at about $11 billion with a “strong focus on store remodels, customer initiatives, e-commerce, technology and the supply chain.” Walmart US said it expects to open fewer than 10 stores in fiscal 2020, while Walmart International will open more than 300 stores primarily in Mexico and China.

Companies: Walmart Inc.
Price: 102.70 Price Change: +2.71 Percent Change: +2.71

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