Hello everyone, I'm Rose, and you're watching Trending News
on Kalkine TV in this edition. We throw some light on Walmart stock shooting
up after beating fourth quarter expectations and raising its guidance.
New York Stock Exchange listed Walmart declared its fourth-quarter and fiscal 2022 results,
beating analysts’ expectations for profit and sales, on Thursday. The stock rose 2.63%
to US$137.04 in the premarket after the results. In its Fourth quarter earnings, the company
reported revenue increased by 0.5% year-over-year to US$152.9 billion in the fourth quarter. The
operating income grew by 7.3% to US$5.9 billion. The consolidated net income to the company rose to
US$3.56 billion from a net loss of US$2.09 billion in the year-ago quarter. Earnings per share
diluted advanced to US$1.28 from a loss earnings per share diluted of US$0.74 in the same period of
the previous year. Its inventory levels went up by 26% globally, and 28% in the US, but affected by
higher goods and transit cost. However, it managed to keep its operating expenses almost flat.
Lets look at the full-Year 2022 earnings.
Walmart reported total revenue increased 2.4% year-over-year.
The Walmart US segment comparable sales grew by 6.4% in the financial year 2022,
while net sales rose by 6.3% from the previous year. Net sales for the Walmart
International segment declined 16.8%, and Sam’s Club segment net sales grew 15.1%
in fiscal 2022. It reported an 11.3% increase in the membership income. Walmart US eCommerce
sales grew by 11.0%, driven by its marketplace growth and fulfillment services in the US, India,
and Mexico. The company added roughly 20,000 new sellers to the US marketplace. Moreover, its net
income came in at US$13.6 billion, an increase of 1.2% year-over-year for the financial year 2022.
The GAAP earnings per share came in at US$4.87, and the adjusted earnings per share was US$6.46.
Its operating cash flow decreased about 33% due to costly inventory and other purchases to support
sales and wage payments. Out of the operating cash flow, it paid US$6.2 in dividends and US$9.8
billion for share repurchase, which is around 50% of the US$20 billion authorized last year.
Looking at the full-year 2023 Guidance.
Walmart expects consolidated net sales to increase by around 3%
in constant currency. Comparable sales for Walmart US to grow slightly above
3%. The earnings per share growth is expected to increase in the mid-single digits. The company
expects to increase the capital expenses on automation, technology, and supply chain
at the upper end of 2.5% to 3% of net sales in the financial year 2023. Walmart’s revenue and
net income grew despite pandemic disruptions. It currently employs some 2.3 million associates.
Around 230 million customers and members visit its stores and clubs in 24 countries
and eCommerce websites every week. Currently, it has a market capitalization of US$378.3 billion.
Well, the bottom line is, though the supply chain costs were high, Walmart’s massive presence
worldwide helped generate growth. Walmart Connect,
the ad unit, saw a 136% increase in active US advertisers.
Well, that's all for now in this edition of trending news; keep
watching Kalkine TV for more news and info on the economy and markets. I’m Rose signing off.