Connect with us

Hi, what are you looking for?

Business

“After earnings beat, analysts update Walmart stock price target.”

Walmart made headlines on February 20th as its shares reached a new all-time high. This surge came on the heels of an impressive fourth-quarter earnings report, an uptick in its annual dividend, and the announcement of a significant acquisition – the purchase of smart-TV maker Vizio for $2.3 billion.

Doug McMillion, the President and CEO of Walmart, expressed satisfaction with the team’s achievements and optimism for the future. He emphasized the company’s commitment to lowering prices for its customers and members.

In the fourth quarter, Walmart exceeded expectations with adjusted earnings of $1.80 per share, marking a 5.3% increase from the previous year. Revenue also outperformed forecasts, climbing 5.7% to $173.4 billion. Furthermore, U.S. same-store sales saw a robust 4% increase.

The acquisition of Vizio presents Walmart with exciting new opportunities, particularly in serving customers and advertisers. Looking ahead, Walmart anticipates earnings per share in the range of $6.70 to $7.12 for the upcoming fiscal year, with a projected increase in net sales of 3% to 4%.

Walmart’s eCommerce sales soared, surpassing $100 billion for the first time and registering a remarkable 23% year-over-year growth. John David Rainey, Walmart’s Chief Financial Officer, highlighted the company’s focus on eCommerce profitability and the strategic advantage of its proximity to customers through its physical stores.

Following Walmart’s stellar performance, analysts adjusted their price targets upward. Morgan Stanley raised its target to $200, while Piper Sandler increased its target to $228. Both firms cited Walmart’s strong fourth-quarter results and positive outlook as reasons for the adjustments.

Despite challenges in certain merchandise categories, Walmart remains optimistic about its future growth prospects. With its strategic initiatives and emphasis on value and convenience, Walmart is well-positioned to maintain its success and continue capturing market share, particularly in the eCommerce sector.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Business

Microsoft Teams had a major hiccup on Friday, causing disruptions and various issues for users. The problem started around 11 a.m. EST and quickly...

Technology

Apple is gearing up for a significant refresh of its iPad lineup in 2024, starting with the anticipated launch of the iPad Pro in...

Business

Tesla is pulling back nearly 200,000 cars in the U.S. over a glitch with the backup camera not kicking in when the car’s in...

Business

JetBlue Airways is considering pulling out of its $3.8 billion acquisition of Spirit Airlines following a federal judge’s blockage of the deal in response...