Earnings Results: Walmart’s stock reverses early losses as analysts welcome market-share growth in grocery

by | Feb 21, 2023 | Stock Market

Walmart Inc.’s stock reversed early losses Tuesday, after the retailing giant beat fourth-quarter earnings estimates and raised its dividend but offered weaker-than-expected guidance for the first quarter and for fiscal 2024. The stock was last up 0.6% after falling more than 4% in premarket trading, with analysts homing in on rising market share in grocery, a key segment.

An increase of 8%-plus in same-store sales in the U.S. was “a testament to the company’s strong positioning in the present environment,” Jefferies analysts said. “While gross margin was down due to markdowns and mix, we encourage investors to focus on the fact that Walmart is gaining market share, which we believe is of material importance,” analysts led by Corey Tarlowe wrote in a note to Jefferies clients. “Although the fiscal-year outlook is below expectations, we see substantial opportunity for Walmart to outperform ahead.” Jefferies reiterated its buy rating on the stock. Bentonville, Ark.–based Walmart posted net income of $6.275 billion, or $2.32 a share, for the quarter ending Jan. 31, up from $3.562 billion, or $1.28 a share, in the same period of the previous year. Adjusted per-share earnings came to $1.71, ahead of the $1.52 FactSe …

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