By Jaewon Kang | Bloomberg
Walmart topped earnings estimates in the fourth quarter as choosy shoppers nevertheless kept buying in its stores.
Separately, Walmart said it agreed to buy smart-TV maker Vizio Holding Corp. for about $2.3 billion. The deal would accelerate the retailer’s advertising business, called Walmart Connect, and help Walmart and its advertisers engage more with customers. Walmart has been expanding nonretail businesses that have faster growth and better margins.
The deal announcement confirmed a Wall Street Journal report from last week. Vizio shares soared 16% in New York trading Tuesday, while Walmart gained as much as 6.3% — its biggest rise since November 2022.
Walmart’s same-store sales excluding fuel — a key metric for retailers — increased 4% for US stores during the quarter through the end of January from the same period a year earlier. Wall Street was expecting 3.1%.
The Bentonville, Arkansas-based company reported adjusted earnings of $1.80 a share, higher than the analyst forecast of $1.65. Adjusted operating income grew about 13%. The stock was up about 16% over the past year through last week and has been trading around record levels.
Softer guidance
Still, the world’s largest retailer delivered softer guidance for the current fiscal year, as it expects consumers to be selective in their spending.
“They are being choiceful,” Chief Financial Officer John David Rainey said in an interview. Consumers are resilient but looking for value, spending less per trip but have been shopping frequently, he said, adding that the company expects some resilience to continue for the rest of the year.
The company is forecasting sales to grow between 3% and 4% for fiscal 2025 — slower than growth from the prior year. It expects adjusted earnings of $6.70 to $7.12 a share, with analysts’ consensus estimate at $7.09.
Walmart is gaining share in nearly every category, Rainey said, and e-commerce is among the factors driving…
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