Walmart Q4 Results Top Estimates; Provides Rosy Outlook

(RTTNews) - Retail giant Walmart Inc. (WMT) reported Tuesday a profit for the fourth quarter that declined 12.4 percent from last year, reflecting sharply lower other gains, despite strong revenue growth amid strength in Walmart International operations. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

However, shares of the retailer are up $7.64 or 4.48 percent to $178.00 in pre-market trading after it provides rosy earnings guidance for the full-year 2025.

"We crossed $100 billion in eCommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays.," said Doug McMillon, President and CEO.

For the fourth quarter, consolidated net income attributable to Walmart for the quarter was $5.49 billion or $2.03 per share, lower than $6.28 billion or $2.32 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $1.80 per share, compared to $1.71 per share in the year-ago quarter.

On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $1.64 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter, comprising net sales and membership and other income, grew 5.7 percent to $173.93 billion from $164.05 billion in the same quarter last year. Revenues increased 4.9 percent to $172.12 billion in constant currency. Analysts were looking for revenues of $170.71 billion for the quarter.

Net sales grew 5.6 percent to $171.91 billion, and Membership and other income increased 13.0 percent to $1.47 billion from last year. Consolidated U.S. comp sales, without fuel, increased 3.9 percent.

Walmart U.S. comp sales, without fuel, increased 4.0 percent and net sales rose 3.4 percent to $117.64 billion. Walmart U.S. eCommerce sales grew 17 percent and Walmart Connect advertising sales grew 22 percent.

Sam's Club comp sales, without fuel, increased 3.1 percent and net sales also grew 2.0 percent to $21.85 billion from last year. Membership income increased 10.0 percent, with record total membership and Plus penetration.

Net sales at Walmart International grew 17.6 percent to $32.42 billion, with strength in Walmex, Flipkart and China. Net sales also increased 13.0 percent to $31.16 billion in constant currency. eCommerce sales increased 44 percent and Advertising business grew 76 percent.

Looking ahead to the first quarter, the company now expects adjusted earnings in a range of $1.48 to $1.56 per share on a pre-split basis and $0.49 to $0.52 per share on a post-split basis, on consolidated constant currency net sales growth of 4 to 5 percent.

Analysts expect earnings of $1.48 per share on revenues of $145.89 billion for the quarter. For fiscal 2025, the company now projects adjusted earnings in a range of $6.70 to $7.12 per share on a pre-split basis and $2.23 to $2.37 per share on a post-split basis, on consolidated constant currency net sales growth of about 3.0 to 4.0 percent.

The Street is looking for earnings of $6.55 per share on a revenue growth of 3.4 percent to $618.84 billion for the year.

Separately, the Board of Directors of Walmart approved a 9 percent higher annual cash dividend for fiscal year 2025 of $0.83 per share on a post-stock split basis, or $2.49 per share on a pre-split basis

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