Walmart, the retail giant, made headlines as its shares surged to an all-time high, becoming the best performer on the Dow Industrials.
The company’s optimistic outlook for fiscal 2025 sales, surpassing Wall Street expectations, and a 9% increase in its annual dividend were key drivers behind the stock’s remarkable performance.
Closing at $175.88, Walmart’s shares soared by 3.23% following a peak of $181.35 on Tuesday, marking an impressive 11% gain so far this year.
“Wide-moat Walmart capped off a strong fiscal 2024 with solid fourth-quarter results that exceeded our expectations. The firm’s $1.80 in adjusted EPS for the quarter landed about 8% ahead of our forecast as the company’s low prices continued to attract consumers,” said Noah Rohr, Analyst at Morningstar.
“However, management issued fiscal 2025 guidance that came in slightly below our expectations on both the top and bottom lines. As such, we do not plan to alter our $147 fair value estimate materially.”
Goldman Sachs reiterated a Buy rating on Walmart, affirming investor confidence in the company’s future prospects amidst its strong performance.
In its latest quarterly report, Walmart reported a 4% uptick in total U.S. comparable sales, excluding fuel, exceeding forecasts. Adjusted earnings stood at $1.80 per share, surpassing expectations of $1.65 per share.
Looking ahead to fiscal year 2025, Walmart projects consolidated net sales to grow between 3% and 4%, outpacing analyst predictions of a 3.4% rise. However, the company’s outlook for the next 12 months indicates a more modest growth rate of 3% to 4%, falling short of Wall Street’s 4.5% estimate.
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