Walmart (WMT) Fiscal 4Q18 Results: Solid Quarter, Outlook Slightly Below Consensus

Executive Summary

• Walmart reported fiscal 4Q18 adjusted EPS of $1.33, up from $1.30 in the year-ago quarter and missing the $1.37 consensus estimate. Total revenues were $136.3 billion, up 4.1% year over year and ahead of the consensus estimate of $134.9 billion.
• US comp sales increased by 2.6%, ahead of the 2.2% consensus estimate, on a 1.6% increase in traffic. E-commerce sales and gross merchandise volume (GMV) increased by 23% and 24%, respectively.
• The company’s FY19 guidance calls for revenue growth of 1.5%–2.0%, equivalent to $507.8–$510.3 billion, below the $512.0 billion consensus estimate. The company expects FY19 EPS of $4.75–$5.00, with the $4.88 midpoint below the $4.99 consensus estimate.