:max_bytes(150000):strip_icc()/GettyImages-1519961181-a6a3122e8d8d4e8e8ecae55440995baa.jpg "Walmart stock rises after fourth quarter earnings, buy Vizio")
key takeaways
- Shares of Walmart rose more than 5% early Tuesday after the retailer reported earnings and sales that exceeded forecasts for its fiscal fourth quarter.
- Walmart said it expects consolidated net sales to grow 4% to 5% in its fiscal first quarter.
- The retailer also announced plans to buy smart TV maker Vizio for $2.3 billion in a move to boost its advertising business.
Walmart Inc. (WMT) reported better-than-expected results for its fiscal fourth quarter, as the big-box retailer benefited from consumers keeping an eye on their spending amid elevated levels of inflation.
Shares of the company, which also announced a $2.3 billion deal to buy smart-television maker Vizio (VZIO), rose more than 5% in early trading Tuesday. Vizio shares jumped 15% more before the bell.
Walmart’s net income fell to $5.49 billion, or $1.80 per share, beating analyst estimates of $4.36 billion, or $1.61 per share. Sales rose 6% to $173.39 billion for the three months ending in January – when the company renewed its fiscal year. The company said it expects its fiscal first quarter consolidated net sales to grow 4% to 5%.
Walmart is buying Vizio for $11.50 a share in cash to expand its advertising business. Seth Dallaire, executive vice president and chief revenue officer of Walmart US, said in a statement the acquisition will provide the retailer with “a profitable advertising business that is growing rapidly.”
| Q4 FY 2024 | Analyst Estimates for Q4FY2024 | Q4 FY 2023 | % change year over year | |
|---|---|---|---|---|
| Income | $173.39 billion | $170.33 billion | $164.05 billion | 6% |
| earnings per share | $1.80 | $1.61 | $2.32 | -22% |
| Net income | $5.49 billion | $4.36 billion | $6.28 billion | -12% |
