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Wall Street expects Walmart to post solid results for the fourth quarter on Tuesday, but investors want to know more about the performance of the world's largest retailer during the 2018 holiday shopping season and the State of its investment in Flipkart.
Experts predicted a potentially record shopping spree between Thanksgiving and Christmas, but expectations were tempered earlier this month when Commerce data showed a 1.2% drop in retail sales in December; largest decline since September 2009. Nonetheless, Walmart Investments (WMT) New payment technology and store improvements, as well as toy selection, have likely led to good sales for the Bentonville, Arkansas-based retailer , according to analysts Robert W. Baird & Co.
"CEO Doug McMillon's bold strategy to turn WMT into a more integrated and integrated omni-channel retailer has created momentum for the company at a time when many traditional retailers are losing their relevance to consumers." , wrote recently Peter Benedict, Chief Analyst Note.
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Walmart's online sales are expected to continue to grow, while comparable overall sales are expected to increase by 3%.
At the same time, investors are also eager to obtain up-to-date information on the acquisition by the $ 17 billion Indian Flipkart e-commerce group. While the country's online shopping market is expected to exceed $ 200 billion by 2028, new regulations preventing Walmart and its rival Amazon from offering lucrative product offerings to attract customers could make travel more difficult .
Flipkart chief executive Kalyan Krishnamurthy reportedly warned the Indian government that the crackdown was prompting the company to "devote significant resources" to compliance and that this could result in "significant customer disruption" if the deadline was not met. not prolonged. Despite this request, the rules came into effect on February 1st.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| WMT | WALMART INC. | 99.99 | +1.47 | + 1.49% |
| AMZN | AMAZON.COM INC. | 1,607.95 | -14.70 | -0.91% |
With the exception of Flipkart's losses, Benedict expects overall operating profit to be stable compared to the previous year.
While Walmart is investing heavily in new technology in its stores, some of its flagship businesses have already failed, raising fears that it will lose ground in the battle against Amazon. In early February, the company terminated its partnership with Deliv for a same-day grocery delivery service. Walmart continues to collaborate with delivery companies such as DoorDash and Postmates.
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Wall Street expects fourth-quarter earnings per share to rise 0.3 percent to $ 1.33, according to Refinitiv, for a business turnover of $ 138.65 billion, a gain of 1.8% compared to the same period of the previous year. In the third quarter, sales rose 2.4% to $ 126.1 billion, while earnings declined slightly to $ 1.7 billion, or 58 cents per share.
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