Walmart Q4 Profit Misses View, But Revenues Top

(RTTNews) - Walmart Inc. (WMT) Thursday reported a loss for the fourth-quarter of fiscal year 2021 compared to net income in the prior year, reflecting an incremental expenses related to COVID-19 and the company's decision to repay property tax relief in the U.K. Quarterly total revenues increased 7.3 percent. Walmart U.S. comp sales grew 8.6 percent and Walmart U.S. eCommerce sales grew 69 percent.

Adjusted earnings per share for the fourth-quarter missed analysts' expectations, while quarterly revenues topped their estimates.

In Thursday pre-market trade, WMT was trading at $140.35, down $6.85 or 4.65 percent.

Looking ahead, the company expects net sales, operating income and earnings per share to decline in fiscal year 2022 primarily due to the impact of anticipated divestitures. Excluding the effect of divestitures, net sales are expected to grow low single-digits with operating income and earnings per share are expected to be flat to up slightly.

The company said it is investing in automation to fuel future sales and earnings growth. It projects capital investments for fiscal year 2022 to be nearly $14 billion to build supply chain capacity and automation to stay ahead of demand, improve the customer experience and increase productivity.

The retail giant reported that its net loss attributable to the company for the fourth-quarter was $2.09 billion or $0.74 per share compared to a net income of $4.14 billion or $1.45 per share in the same quarter last year.

Adjusted net income for the fourth-quarter was $1.39 per share compared to $1.38 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.51 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Adjusted operating income in constant currency decreased 3.2 percent, primarily as a result of incremental expenses related to COVID-19 and the company's decision to repay property tax relief in the U.K.

Total revenues for the fourth-quarter were $152.08 billion, an increase of 7.3 percent from $141.67 billion in the previous year. Excluding currency, total revenue would have increased 7.5 percent to reach $152.3 billion. Analysts expected revenues of $148.47 billion for the fourth-quarter.

Walmart U.S. fourth-quarter comp sales increased 8.6 percent with strength across most key categories. Walmart U.S. eCommerce sales increased 69 percent with strong results across all channels.

Sam's Club comp sales increased 10.8 percent and eCommerce sales grew 42 percent. Reduced tobacco sales negatively affected comp sales by about 410 basis points. Membership income increased 12.9 percent, the strongest growth in six years.

Walmart International net sales were $34.9 billion, an increase of 5.5 percent. Net sales in constant currency increased 6.3percent, led by Flipkart, Mexico and Canada. Changes in currency rates negatively affected net sales by about $0.3 billion.

Walmart said it will invest in U.S. wages, raising the associate average to above $15 per hour.

The company increased its dividend for the 48th consecutive year and approved a new $20 billion share repurchase program.