Walmart Reports Blowout Fourth Quarter Results

Shares of retail giant Walmart were heading higher on Tuesday after the company reported holiday financial results for the fourth quarter that topped estimates. Shares saw a gain of about 4% on the report.

For the quarter, e-commerce sales saw a growth of 43% thanks in part to shoppers opting for the company’s grocery delivery service and spending more per trip.

According to CEO Doug McMillon, it was “a favorable economic environment” that has been helping Walmart grow sales and take market share from rivals.

“To us, the consumer looks like they’re in pretty good shape,” CFO Brett Biggs said. “Gas prices are down. … We’re always monitoring the consumer and are ready to act if things change, but we feel our guidance is good for the next year and our business model works well in most environments.”

For the quarter, Walmart reported adjusted earnings per share of $1.41 compared to the $1.33 that was expected. Revenue was $138.79 billion, coming in higher than the $138.65 billion expected. Expectations were based on a survey by Refinitiv:

Walmart reiterated its sales outlook for 2019 and raised its annual dividend which will be payable to shareholders on April 1 by 2 percent to $2.12 per share, up from $2.08 a share.

Sales at Walmart stores in the U.S. operating for at least 12 month were up 4.2 percent, beating the 3.2% that was expected.

“Our fulfillment shipping costs are improving as we continue to enhance our [online] assortment,” McMillon said on the earnings call. “Repeat visits should increase and contribute to improving profitability.”

Disclaimer: We have no position in Walmart Inc. (NYSE: WMT) and have not been compensated for this article.