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Walmart Inc. (WMT) reported mixed results for its fiscal fourth quarter, with adjusted earnings of $0.66 per share and revenues of $180.6 billion, both slightly exceeding consensus estimates. U.S. comparable sales grew by 4.6%, driven by market share gains across product categories, pricing strategies, and strong performance in higher-margin areas like digital advertising and eCommerce. However, the company's fiscal 2026 guidance for adjusted EPS of $2.50-$2.60 fell short of the $2.76 consensus, reflecting a conservative outlook influenced by FX headwinds, strategic investments, and uncertainties such as inflation and potential tariffs. Walmart reaffirmed its fiscal 2026 revenue growth guidance of 3%-4%, down from 5.1% in fiscal 2025, while maintaining its focus on low prices to attract cost-conscious consumers. Despite operational strengths, including a net margin of 2.91%, return on equity of 5.87%, and a debt-to-equity ratio of 0.66, Walmart's stock declined 6.5% post-earnings, reflecting investor concerns over guidance and broader market conditions. Analysts remain divided, with some lowering price targets while others raised them, resulting in an average 12-month price target increase of 2.93% to $107.41. Strategic initiatives, such as eCommerce growth (now 18% of net sales) and delivery services covering 93% of the U.S., position Walmart for long-term growth, with eCommerce expected to account for 50% of sales within five years. While challenges persist, Walmart's focus on operational efficiency and customer value underscores its resilience and potential for sustained performance.
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Walmart Analysts: Strategy Curbs Price Hikes Despite Tariffs

Analysts maintain positive outlook on Walmart (WMT) ahead of Q1 earnings release. Expecting sales growth, with potential offset from consumer spending and tariffs. Estimates for future sales and EPS remain consistent. Walmart well-equipped to handle potential tariff impacts.

About WMT

Walmart serves as a leading retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its ... Read more

Ways to trade options* on WMT

Bearish Option Strategy: Put Spread

Traders buy a put option near the money and sell another at a lower strike. This strategy can leverage a price drop with limited capital at risk.

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