Walmart earnings, high comparable sales; Walmart shares at Dow Jones jump


Dow Jones stock Walmart (WMT) announced Tuesday earnings above expectations for the holiday quarter, with comparable sales and strong online sales. Walmart shares rose sharply after already crossing a point of purchase on Friday.


Walmart Earnings

estimates: Wall Street expects Walmart's earnings per share to stay at $ 1.33, according to Zacks Investment Research. Revenues are expected to increase by 2% to $ 139.3 billion, but other estimates were forecasting sales of about $ 138.65 billion. Same-store sales, excluding the effects of fuel consumption and foreign currency, increased 2.9%, with US sales up 3.2% for Walmart and 2.9% for Sam & # 39; s Club, according to Consensus Metrix.

Results: Walmart's profit climbed to $ 1.41 per share, and sales of saals to $ 138.793 billion. Sales in US stores at Walmart climbed 4.2%, while sales at Sam's Club rose 3.3%. Online sales in the United States Walmart increased by 43%.

Perspective: Walmart reiterated the direction for 2020.

Walmart's profits for the crucial vacation quarter come just days after the Commerce Department announced an unexpected drop in retail sales in December, the biggest drop in nine years.

In the meantime, Walmart, which has bought the Indian e-commerce giant Flipkart, finds India difficult. with new rules limiting giants online in this country. These restrictions also hurt (AMZN), which made an offer for Flipkart and is No. 2 in India.

Walmart Stock

Stocks jumped 4.7% in pre-market trading on the stock market today, while Dow Jones futures slightly reduced their modest losses. Actions of the rival with big surface Target (TGT) climbed 1.6% on Tuesday morning.

MarketSmith's analysis shows Walmart's stock earned 99.45 points on a 13-week goblet with a handle on Friday, although the volume was only 6% higher than normal . Investors need to focus on developments with volumes at least 40% to 50% above normal, a sign of institutional buying. Aside from several previous sessions, the relative strength of the line has shifted slightly since the end of October.

Walmart's core values ​​are not ideal, which is why it only has a 52% IBD composite rating. The EPS value of 61 is also poor. Its relative strength rating is rather average 72. Walmart shares have increased 7.3% since the beginning of the year, while those of the S & P 500 have increased by 10.7%. He is in second place behind Costco (COST) in the Retail-Major Discount Chains group.

Analysts support Walmart stock

Telsey CEO Joe Feldman said the stock was outperforming with a target of 113% in terms of earnings. He expected sales growth of 1.7% to $ 138.5 billion and Wal-Mart US comparable store sales growth of 3.0%.

"The expected good results reflect favorable macroeconomic trends, including jobs, wages and the price of gasoline, as well as the benefits of price investments, product freshness, rising inventories , improved merchandising, including private labels and exclusive partnerships with Ellen DeGeneres and Sofia Vergara and a wider assortment of toys (30% new products in store and 40% more online) ", he said in a research note.

He also pointed out that online sales should be strengthened by a redesign of the website. This is the key to the company that continues to fight Amazon in e-commerce in the United States, India and elsewhere. However, Feldman also believes that the US government and the severe cold in some places are problematic.

At the same time, Oliver Chen, general manager of Cowen, noted that the title outperformed with a goal of 120.

"We continue to love the WMT despite its high multiple (20.2x P / E FY2), as we believe it has attractive offensive and defensive qualities, including a dynamic and fast-paced digital steering wheel, a participation in the category of high-traffic grocery stores and the ability to generate strong free cash flow, "he said in a research note.


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