Shares of Walmart Inc. jumped further into record territory Tuesday amid a busy day for the discount retail giant, which reported an earnings beat, confirmed a $2.3 billion deal to buy smart-TV maker Vizio Holding Corp.
VZIO,
+0.21%
and raised its dividend by 9%. Under the terms of the deal, Walmart
WMT,
+0.63%
will pay $11.50 for each Vizio share
VZIO,
+0.21%
outstanding, which represents a 20.7% premium above Friday’s closing price of $9.53.
“Our announcement today that we’ve agreed to acquire Vizio gives us the opportunity to reach and serve customers in new ways, and connect more dots for those that advertise with us,” said Chief Executive Doug McMillon in the post-earnings call, according to a FactSet transcript. Walmart expects the deal to slightly reduce earnings in the near term, given transaction-related costs, such as employee retention and technology integration. Walmart’s stock powered up 4.6% in premarket trading, while Vizio shares shot up 15.6%. The Wall Street Journal reported last week that the companies held talks about a deal. On the downside for Walmart, the company provided a current-quarter profit outlook below expectations. For the quarter to Jan. 31, Walmart reported net income that fell to $5.49 billion, or $2.03 a share, from $6.28 billion, or $2.32 a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of $1.80 beat the FactSet consensus of $1.64. Total revenue grew 5.7% to $173.39 billi …
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VZIO,
+0.21%
and raised its dividend by 9%. Under the terms of the deal, Walmart
WMT,
+0.63%
will pay $11.50 for each Vizio share
VZIO,
+0.21%
outstanding, which represents a 20.7% premium above Friday’s closing price of $9.53.
“Our announcement today that we’ve agreed to acquire Vizio gives us the opportunity to reach and serve customers in new ways, and connect more dots for those that advertise with us,” said Chief Executive Doug McMillon in the post-earnings call, according to a FactSet transcript. Walmart expects the deal to slightly reduce earnings in the near term, given transaction-related costs, such as employee retention and technology integration. Walmart’s stock powered up 4.6% in premarket trading, while Vizio shares shot up 15.6%. The Wall Street Journal reported last week that the companies held talks about a deal. On the downside for Walmart, the company provided a current-quarter profit outlook below expectations. For the quarter to Jan. 31, Walmart reported net income that fell to $5.49 billion, or $2.03 a share, from $6.28 billion, or $2.32 a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of $1.80 beat the FactSet consensus of $1.64. Total revenue grew 5.7% to $173.39 billi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]