FMP
Walmart Reports Q1 EPS Miss, Shares Down 17% This Week
May 19, 2022 12:00 AM - Davit Kirakosyan
Image credit: FMP
Walmart Inc. (NYSE:WMT) reported Q1 results, with revenue of $141.6 billion coming in better than the consensus estimate of $138.88 billion, while EPS of $1.30 missing the consensus estimate of $1.48. The company’s shares lost around 17% this week.
While the company maintained top-line momentum, comments about consumer trade down and elevated general merchandise inventory levels are semi-concerning. Analysts at RBC Capital expect inflation-led pricing to continue to support the top-line near-term but they will be paying close attention to elasticity levels - especially in more discretionary categories.
The analysts adjusted their 2023/2024 US comp estimates to 3.5%/2.5% from the previous 3.2%/3.0% range and EPS to $6.40/$6.94 from the previous $6.75/$7.24.
While the quarterly results and the 2023 EPS guidance of a 1% decline were disappointing, the analysts believe the company is one of the 'safest' plays in an uncertain macro environment. The analysts maintained their outperform rating but lowered their price target to $153 from $160.
Other Blogs
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
P/E Ratios Using Normalized Earnings
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
What is Price To Earnings Ratio and How to Calculate it using Python
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
VMware Stock Drops 12% as China May Hold Up the Broadcom Acquisition
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...
