Walmart reported on Tuesday's revenue and revenue for the holiday quarter that topped analysts' expectations, as e-commerce sales increased 43 percent thanks to more buyers using their online grocery store and spending more per trip.
Walmart shares were up about 4 percent in premarket news on the news.
This is what the dealer reported e for the fourth quarter fiscal 2019 compared to what analysts predicted, based on a refinitive survey:
- Earnings per share adjusted: $ 1.41 against $ 1.33
- Revenue: $ 138.79 billion vs 138, $ 65 billion expected
- Same store sales in the US: up 4.2 percent vs. growth of 3.2 percent expected
Walmart reported net revenue for the quarter ended January 31 at $ 3.69 billion, or $ 1.27 per share, compared to $ 2.18 billion, or 73 cents per share, a year ago. Except for one-time items, Walmart earned $ 1.41 per share, 8 cents over analysts' expectations based on a refinitive survey.
Revenues rose nearly 2 percent to $ 138.79 billion from $ 136.27 billion a year ago. It was ahead of expectations of $ 138.7 billion.
Sales at Walmart stores in the US that operated for at least 12 months were up 4.2 percent, topping expected growth at 3.2 percent. The company said that the traffic in the stores was up only 0.9 per cent in the quarter, compared with 1.6 per cent a year ago. However, the average shopper's ticket grew 3.3 percent. A year ago, the average ticket was only 1 percent.
Net sales increased by 43 percent in the fourth quarter, corresponding to growth in the previous quarter. Walmart said that for the year, e-commerce sales grew by 40 percent, as it had been targeting. The company has invested heavily in adding more products – such as celebrity inspired clothing and high-end camping gear – to its website to achieve that goal and compete with Amazon. It has also been on a buying spree of electronic brands like Art.com and the lingerie Bare Necessities.
Walmart did not change the sales outlook for fiscal 2020, as it shared with analysts and investors last October. Net sales growth is assumed to be at least 3 percent, damaged by the deconsolidation of Walmart's Brazil business and reduced tobacco sales at Sam's Club. Walmart still expects net sales to climb about 5 percent internationally.
Walmart is still demanding that US same store sales should increase 2.5 to 3 per cent for the year. Fiscal 2020 operating revenues are expected to slow somewhat.
Meanwhile, the company is targeting growth growth for e-commerce of 35 percent for fiscal 2020, which will not be as robust as it could achieve last year. Walmart said on Tuesday that it will spend most on store models, e-commerce initiatives and anchor its supply chain in 2019.
From Friday's market terminal, Walmart shares are around 7 percent so far this year, bringing the retailer's market value to around $ 290.5 billion. It is compared to rival Target, which has seen its share price climb about 9 percent this year, bringing its market value to $ 37.7 billion.
The target assets were up 1.5 percent on Tuesday morning, due to Walmart's busy earnings report. The Amazon shares were around 0.2 percent.