Walmart (WMT) Q4 2024 Earnings Report

Headline:

* Walmart (NYSE:WMT) Reports In-Line Q4 Revenue, Misses Earnings Estimates

Key Highlights:

* Revenue: $180.6 billion (4.1% YoY growth) vs. $180.3 billion analyst consensus
* Adjusted EPS: $0.66 vs. $0.65 analyst consensus (2.2% beat)
* Q1 2025 Revenue Guidance: $167.2 billion, in line with analyst expectations
* Adjusted EPS Guidance for FY2026: $2.55 (7.7% below analyst estimates)
* Same-Store Sales: Up 4.6% YoY

Business Overview:

* Walmart is a leading retailer known for its large-format Supercenters and wide product selection.
* As a big-box retailer, Walmart leverages its scale to secure volume discounts and offer competitive prices.
* While e-commerce poses a challenge, Walmart has invested in omnichannel capabilities to maintain its position.

Sales Growth:

* Over the past five years, Walmart has experienced modest sales growth of 5.4% CAGR.
* This growth has been constrained by the company's limited store expansion strategy.

Store Performance:

* Walmart has maintained a stable store count, focusing on operational efficiency.
* Same-Store Sales have consistently surpassed expectations, indicating strong organic growth.

Q4 Performance:

* Walmart's revenue met analyst estimates but missed EPS guidance.
* Same-Store Sales remained solid, in line with historical trends.

Stock Movement:

* Following the earnings report, Walmart's stock declined 8.6% to $94.99.

Conclusion:

* Walmart's Q4 results were mixed, with strong sales growth offset by a miss on earnings estimates.
* Investors should consider the company's valuation, business fundamentals, and earnings trend before making investment decisions.