Walmart Inc (NYSE:WMT) shares looked on the road to recovery by midday Tuesday following a disappointing 2023 outlook that sent its stock falling in premarket trading.
Even though the retailer’s 4Q revenue of over $164 billion and adjusted EBITDA of $1.71 came in ahead of Wall Street estimates, a softer fiscal 1Q and full-year 2024 outlook disappointed investors.
The firm is projecting adjusted earnings per share of $5.90 to $6.05 for fiscal 2024, below consensus estimates for $6.53, according to FactSet. Net sales will grow between 2.5% and 3%, the company said.
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First-quarter guidance was similarly softer. Earnings per share will range from $1.25 to $1.30, the company said, while analysts had expected $1.37.
“While the supply-chain issues have largely abated, prices are still high and there is considerable pressure on the consumer,” Walmart CFO John David Rainey noted in a call with investors. “Our guidance reflects a cautious outlook on the macro environment.”
Shares of Walmart were up around 0.5% by midday at US$147.15 in New York.
Contact Angela at angela@proactiveinvestors.com
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