Most of this week’s content was already sent. In case you missed it:
- Grab (GRAB) Earnings Review
- Nu (NU) Earnings Review
- Celsius (CELH) Earnings Review
- Mercado Libre (MELI) Earnings Review
- 2 Portfolio Updates — the first & the second
Other reviews sent this earnings season:
- Amazon, Cloudflare and Disney Earnings Reviews
- Datadog Earnings Review
- Airbnb Earnings Review
- Uber Earnings Review
- Shopify & Chipotle Earnings Reviews
- Alphabet & AMD Earnings Reviews
- PayPal Earnings Review
- Palantir Earnings Review
- Meta, Tesla & Starbucks Earnings Reviews + DeepSeek News & Implications
- Microsoft & Apple Earnings Reviews
- ServiceNow Earnings Review (section 2)
- Spotify Earnings Review (section 3)
- The Trade Desk Earnings Review
Next Week, coverage will include:
- PayPal Investor Day
- Hims Earnings Review
- Cava Earnings Review
- Lemonade Earnings Review
- Nvidia Earnings Review
- Salesforce Earnings Review
- Snowflake Earnings Review
- Duolingo Earnings Review
Table of Contents
1. Earnings Snapshots
a. Walmart (WMT)
Demand:
- Beat revenue estimates by 0.9%.
- Beat 4.4% Walmart U.S. comparable (comp) store sales growth estimate with 4.6% growth.
Profits, Margins & Returns:
- Met 23.9% gross profit margin (GPM) estimates.
- Beat EBIT estimates by 0.7%.
- Beat $0.65 EPS estimates by $0.01.
- Missed free cash flow (FCF) estimates by 18%.
Balance Sheet:
- $9.04B in cash & equivalents.
- Inventory rose 2.7% Y/Y to $56.4B.
- $5.7B in total short term debt & borrowings.
- $33.4B in long-term debt.
- Diluted share count fell by 0.3%Y/Y.
- 2024 dividends rose by 13% Y/Y.
Guidance & Valuation:
For Q1, Walmart guided to 3.5% FXN revenue growth. Analysts were looking for 4% overall growth. Considering FX is expected to remain a headwind, this is a miss. Its 2% FXN EBIT growth guide missed 12% growth estimates and its $0.58 adjusted EPS guide missed $0.65 estimates. Results include headwinds from leap year, a small revenue tailwind from VIZIO M&A and a profit headwind of 70 bps from VIZIO.
For the full year, 3.5% FXN revenue growth and an expected FX headwind missed 4.2% growth estimates. 4.5% FXN EBIT growth guidance missed 8% estimates and $2.55 adjusted EPS guidance missed $2.76 estimates.
Walmart trades for 36x forward EPS. EPS is expected to grow by 5% this year and then compound at a 12% clip over the next two years.
