Walmart Disappoints: ETFs In Focus
Zacks Investment Research | Feb 18, 2020 10:10PM ET
Walmart’s (NYSE:WMT) fourth-quarter fiscal 2020 results disappointed investors. The mega retailer broke its positive surprise streak by registering its first quarterly earnings miss in the past two years. Revenues also fell shy of the Zacks Consensus Estimate. A shorter holiday season and weak demand for apparel, toys and electronics hurt sales in stores.
Earnings per share came in at $1.38, missing the consensus estimate by 5 cents. Also, the bottom line declined from the year-ago figure of $1.41. Revenues inched up 2.1% year over year to $141.7 billion but fell short of the consensus mark of $142.4 billion. U.S. comp sales increased on a two-year stacked basis by 6% with continued strength in food and consumables. E-commerce sales jumped 35%, driven by strong online sales and robust growth in online grocery.
For fiscal 2021, the brick-and-mortar retailer expects adjusted earnings per share of $5-$5.15, sales growth of 3% at constant currency, and U.S. comparable store sales growth of 2.5%.
Market Impact
Despite the miss, shares of WMT gained 1.5% on the day of the earnings release. The stock also crushed its average daily volume figures as nearly 10.9 million shares moved hands compared with 5.4 million on average. WMT currently has a Zacks Rank #3 (Hold) and a VGM Score of C. It belongs to a favorable Zacks industry (placed at the Zacks Investment Research
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