Walmart beats earnings, boosts dividend, buys Vizio for $2.5 billion

Earnings at world's largest retailer impress as it notches nearly $175 billion fourth-quarter sales.

Feb 20, 2024 - 20:30

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Walmart beats earnings, boosts dividend, buys Vizio for $2.5 billion

Updated at 9:09 AM EST

Walmart (WMT) posted stronger-than-expected fiscal-fourth-quarter earnings Tuesday, while issuing a big boost to its annual dividend and unveiling a $2.3 billion takeover of smart-TV maker Vizio (VZIO) .

Walmart said adjusted earnings for the three months ended in January came in at $1.80 a share, up 5.3% from the year-earlier period and firmly ahead of the Wall Street consensus forecast of $1.65 a share.

Group revenue, Walmart said, rose 5.7% from a year earlier to $173.4 billion, again topping analysts' estimates of a $170.71 billion tally. U.S. same-store sales were up 4%, firmly ahead of Wall Street's 3.2% forecast.

Looking into the next fiscal year, Walmart sees earnings in the region of $6.70 to $7.12 per share, with net sales rising between 3% and 4%.

Walmart sales neared $175 billion over the three months ending in January.
Jeff Greenberg/Getty Images

"Our team delivered a great quarter, finishing off a strong year. We crossed $100 billion in e-commerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays," said CEO Doug McMillon. "We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”

Walmart shares were marked 4.7% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $178.33 each, a fresh record high that would lift the stock's year-to-date gain to around 11%.

Deal for Vizio set at $11.50 a share

Alongside its fourth-quarter earnings, Walmart said it would pay $11.50 a share for Vizio Holding, a 21% premium to its Friday closing price

The deal will help accelerate its ad business while "helping brands create meaningful connections with the millions of customers who shop with us each week," Walmart said.

Walmart's overall e-commerce sales were up 23% globally and up 17% in the U.S., with each comprising an increasingly larger portion of the group's overall retail revenue.

Vizio shares were marked 15.3% higher at $10.99 each following news of the Walmart acquisition.

Walmart also boosted its 2023 dividend by a larger-than-expected 9%, the biggest increase in more than a decade, taking it to 83 cents a share.

“Dividends continue to be a part of our diversified capital returns approach. We're proud to be increasing our annual dividend for the 51st consecutive year," Chief Financial Officer John David Rainey said.

Earlier Tuesday, home improvement retailer Home Depot (HD) forecast softer-than-expected full year profit, citing fading demand and elevated inflation prospects.