Walmart stock dives as muted outlook clouds solid Q4 earnings

Walmart's dour forecast could suggest consumers spending pressures tied to new tariff threats from the White House.

Feb 20, 2025 - 13:24

Walmart stock dives as muted outlook clouds solid Q4 earnings

Walmart posted stronger-than-expected fourth quarter earnings Thursday but muted near-term forecast send shares in the world's biggest retailer sharply lower in early premarket trading.

Walmart's (WMT) said adjusted earnings for the three months ending in January came in at 66 cents a share, up 10% from the same period last year and just ahead of the Wall Street consensus analyst forecast of 64 cents a share.

Group revenues rose 4.1% to $180.55 billion, narrowly topping analysts' estimates of a $180 billion tally, with U.S. transactions rising 4.3% and overall ticket prices up 1.8%.

U.S. same-store sales were up 4.6%, well ahead of Wall Street's 4.1% forecast, while online sales also impressed, rising 16% from a year earlier and now representing more than a fifth of overall revenue.

Walmart's muted near-term outlook has retail shares on the back foot amid concerns over tariff impacts and a pullback in consumer spending.
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Looking into the coming financial year, which ends in January of 2026, Walmart said it sees adjusted earnings in the region of $2.50 to $2.60 per share, well shy of the LSEG estimate of $2.76 per share, with revenue growth in the region of 3% to 4%.

"Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times," said CEO Doug McMillon.

"We’re gaining market share, our top line is healthy, and we’re in great shape with inventory," he added. "We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.”

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Walmart shares were marked 8.1% lower in premarket trading immediately following the earnings release to indicate an opening bell price of $95.56 each.