Ebene News – CA – Walmart Stock tumbles on missed profits, muted outlook

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Walmart

The stock was down 5% at the start of Thursday’s session after the retail giant’s fourth-quarter profits fell short and it warned of slowing profit growth, news that overshadowed the surge in sales and rising dividends

Walmart (ticker: WMT) said it lost $ 2.09 billion, or 74 cents per share, down from a profit of $ 1.45 a share in the prior year period Excluding losses related to its UK and Japanese companies and other one-off articles, it earned $ 1.39 a revenue share up 73% year over year to $ 152.1 billion Analysts were looking for EPS of $ 1.51 and revenues of $ 148 5 billion

Comparable sales increased 86%, above 6th Consensus estimate of 2% Online sales were again the main driver, up 69% in the quarter Sam’s Club Warehouse Division saw a 5% increase in same-store sales, driven by a 42% increase in e-commerce

Additionally, Walmart increased its quarterly dividend by one cent, or 19%, to 55 cents, payable April 5, marking its 48th consecutive year of dividend increases. It also introduced a new share buyback program. ‘$ 20 billion shares, replacing an earlier program authorized in 2017 The company said it plans to raise the wages of about 425,000 employees to an average of over $ 15 an hour, despite its minimum wage starting will remain 11 dollars Rivals

Amazonecom

(AMZN) and

Target

(TGT) have a starting wage of $ 15 an hour, and the Biden administration has proposed to increase the federal minimum wage, which stands at $ 7.25 an hour

A morning briefing on what you need to know in the day ahead, including exclusive commentary from the editors at Barron’s and MarketWatch

For the full year, Walmart said it expects EPS to “decline slightly”, or be stable or slightly higher excluding disposals. It also sees sales decline at constant exchange rates , but posting weak single-digit growth excluding disposals Current consensus calls for EPS to rise to $ 5.63 for the year, from $ 5.48 the company reported today

The quarter has been mixed for the company Strong sales show it still has a good market share, and e-commerce, although not yet profitable, has seen continuous improvement in margins So that employee increases will drive up total costs and partly explain the company’s modest profit forecast for the full year, they bring Walmart closer to the pay scales of its peers, as noted above

Aside from the mediocre financial results, investors may also be concerned about the high $ 1.1 billion in pandemic-related costs that Walmart faced in the quarter He also said that the capital expenditures were ‘would rise to $ 14 billion in the current fiscal year, an increase of about $ 4 billion – another investment likely needed in his business, but a significant figure

Walmart shares fell 5% early in Thursday after the retail giant’s fourth-quarter earnings fell short and warned of slowing earnings growth, news that overshadowed rising sales and rising dividends

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Walmart stock

Ebene News – CA – Walmart stock drops on missed profits, outlook muted

Source: https://www.barrons.com/articles/walmart-stock-is-falling-on-earnings-miss-muted-outlook-51613657909