Walmart, the biggest store in the world, recently shared its earnings for the last few months of the year. They did better than expected.
Their sales went up by 5.7% compared to the year before, reaching $173.4 billion.
That’s more than what people thought they would make, which was $170.9 billion. More folks choose to shop at Walmart during the holidays because they offer good deals.
Walmart also bought a company that makes smart TVs, called Vizio, for about $2.3 billion. This is to help them grow their advertising business called Walmart Connect.
Plus, they increased the amount of money they give back to investors, showing they’re confident about making more money in the future.
How the Market Responded To The Financial Predictions?
Walmart’s bosses shared their thoughts on how the company’s finances might look by the end of January 2025.
They think sales might go up by 3% to 4%. They expect their earnings per share to be between $6.70 and $7.12 before they split their stock. This matches up pretty closely with what most people think, which is around $7.06.
The stock split will be happening soon it will change earnings to between $2.23 and $2.37. Even though they’re being a bit cautious about the first few months of the year, Walmart’s stock went up by 5.2% on Tuesday morning, hitting $179.29.
That’s the biggest jump it’s had since November 2022 and made it the top performer in the Dow Jones Industrial Average that day.
How Do People Spend In Smart Business?
Walmart is making strategic investments, like buying Vizio, to make more money in different ways and grow its profits.
Their advertising business got almost 30% bigger in 2024, making $3.4 billion. Even though this part of their business is still small compared to everything else, it’s starting to bring in a lot more profit.
Buying Vizio might not immediately add to their earnings per share, but it’s expected to help Walmart’s advertising and membership areas grow faster. These parts of the business could make up 20% of Walmart’s yearly profits by 2025.
