Walmart results: Will US retail giant deliver another earnings beat?
Walmart has so far found a way of dealing with higher input costs and keeping prices competitive for its customers, despite the challenges of rising inflation.
This has subsequently translated into earnings beats in three out of the previous four quarters. Will the US retail giant do it again with its Q4 earnings? IGTV’s Angela Barnes takes a look and shares what the market is expecting.
(AI Video Summary)
Walmart Q4 earnings
Walmart, the well-known retail giant, has been able to tackle the obstacles of increased costs and inflation without compromising on keeping prices affordable for its customers. This accomplishment has helped the company surpass its earnings expectations in three out of the previous four quarters. Now, as we await the release of its Q4 earnings, experts predict that Walmart will earn $1.64 per share on revenue exceeding $170 billion, compared to $1.50 per share and revenue of $151.47 billion in the same quarter last year. However, there are concerns about the potential slowdown in the growth rate of US e-commerce sales, which is estimated to be 11% by 2023.
Vizio
During the earnings call, one topic that might catch our attention is the rumored acquisition of Vizio, a connected TV company, by Walmart. This acquisition, which could be worth around $2 billion, has sparked speculation that Walmart aims to become the next Amazon Prime. However, there are some questions surrounding this acquisition, as other major retailers like Costco, Best Buy, and Target also sell Vizio TVs. We hope to gain more insight and clarity about this acquisition during the earnings call.
Walmart's stock
When we analyze the performance of Walmart's stock, we can see that it has risen by 10% this year, outperforming the broader market, as represented by the S&P 500. The S&P 500 has only experienced half of that growth, which suggests that investors have faith in Walmart's ability to navigate challenges and maintain its position in the retail industry.
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