Wal-Mart beats by $0.08, reports revs in-line; reaffirms FY20 guidance; increases dividend 2%
- Reports Q4 (Jan) earnings of $1.41 per share, excluding non-recurring items, $0.08 better than the S&P Capital IQ Consensus of $1.33; revenues rose 1.9% year/year to $137.74 bln vs the $137.63 bln S&P Capital IQ Consensus. Walmart U.S. Q4 comp sales grew 4.2% vs. +3.2% ests and Walmart U.S. eCommerce sales grew 43%; Walmart U.S. comp sales on a two-year stack of 6.8% is the strongest growth in 9 years. Walmart U.S. eCommerce continued to benefit from the expansion of grocery pickup and delivery and a broader assortment on Walmart.com. Sam's Club comp sales increased 3.3%, and eCommerce sales grew 21%.
- Co reaffirms guidance for FY20, sees EPS down low-single digits from $4.91, excluding non-recurring items, vs. $4.71 S&P Capital IQ Consensus. Net sales growth of at least 3% in constant currency, affected: Positively by the acquisition of Flipkart, negatively by deconsolidation of Walmart Brazil, negatively by planned tobacco sales reduction at Sam's Club. Comp sales growth: Walmart U.S.: +2.5-3.0%, excluding fuel vs. +2.7% estimates; Sam's Club: around +1%, excluding fuel; around +3%, excluding fuel and tobacco; Walmart U.S. eCommerce net sales growth Around 35%; Walmart International net sales growth Around 5% in constant currency Consolidated Operating Income: Decline by a low single-digit%age range, including Flipkart; Increase by a low single-digit%age range, excluding Flipkart
- Approved an annual cash dividend for fiscal year 2020 of $2.12 per share, an increase of ~two% from the $2.08 per share paid for the last fiscal year.