Walmart posted strong earnings and gave good forward guidance. Shares are down about 2 percent anyway.
Please consider Walmart Q2 FY24 Earnings
Walmart Earnings Highlights
- Strong revenue growth of 5.7%; operating income growing faster at 6.7%
- Consolidated revenue of $161.6 billion, up 5.7%, or 5.4% in constant currency
- Walmart U.S. Q2 comp sales up 6.4%
- Walmart International net sales were $27 billion (constant currency), up 11%.
- Sam’s Club strong comp sales led by food and consumables. Membership income was up 7%.
- eCommerce up 24% globally
- GAAP EPS of $2.92; Adjusted EPS of $1.84
- Guides Q3 and raises FY24 outlook
Statement by Doug McMillon, President and CEO, Walmart
“We had another strong quarter. Around the world, our customers and members are prioritizing value and convenience. They’re shopping with us across channels — in stores, Sam’s Clubs, and they’re driving eCommerce, which was up 24% globally. Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter. Our associates helped deliver increases in transaction counts and units sold, and profit is growing faster than sales. We’re in good shape with inventory, and we like our position for the back half of the year.”
Walmart PE
That chart is through Q1. Here are some current numbers.
Key Financial Metrics Walmart 2023 Q2
Stock Market’s Message
- This is as good as it gets
- It was all priced in and then some
- Classic sell the news reaction
Walmart pays a forward dividend yield of about 1.4 percent. You can get 5.45 percent from short-term bonds, 4.3 percent in 10-year bonds, and 4.98 percent in 2-year bonds.
What price are you willing to pay?
That’s the key question everyone holding shares of any company at lofty valuations needs to ask.
Retail Sales Surge 0.7 Percent in July but Autos Decline 0.3 Percent
For a look at current retail sales numbers, please see Retail Sales Surge 0.7 Percent in July but Autos Decline 0.3 Percent
Thanks for the fantastic effort you endeavor, informing consumers about what is really happening in our economy! Its not what the feds nor MSM want us to know.
Smaller yields from blue chips is much better than higher yields on defaulting govt debt, which gets you a big goose egg.
Walmart’s charts have a clear long term E-wave count. The rally from 2007 lows is the last major wave 5. The rally from the 2022 lows is a relatively minor wave 5. Today’s sell off is part of a yet smaller wave 4 of an ending diagonal. The price needs to fall below $154 so that small wave 4 overlaps small wave 1 (but will most likely bounce off $150). This may take another month. When small wave 5 finally ends (in 2024), I would expect a VERY sharp drop to the $120 area.
Unfortunately the economic news is too good and stocks and bonds are suffering. Energy sector did well today at least.
WM good news earnings today, a victim of a tepid August buyers market month, and other issues (10-yr Bonds, China, Higher for Longer,” etc.). Profit taking is also never out of vogue.
Happens. I wouldn’t put a whole lot of attention on a one-day movement.
Contrary to popular belief, banks don’t lend deposits. Secular stagnation was simply the impoundment of bank-held savings, a deceleration in the velocity of circulation.
C-19’s seen a reversal of that trend. That’s pushed interest rates up.
I routinely buy Brahma electrician’s workbooks from Walmart. Last Sept I paid $42 and change delivered to my door, this July $54 and change delivered to my door. And food has skyrocketed. Inflation….
“Walmart pays a forward dividend yield of about 1.4 percent. You can get 5.45 percent from short-term bonds, 4.3 percent in 10-year bonds, and 4.98 percent in 2-year bonds.
What price are you willing to pay?
That’s the key question everyone holding shares of any company at lofty valuations needs to ask. “
This is a gold star post. This is the kind of analysis and commentary I like to see. And I agree, I’m swimming in T-bills earning 5.3% and a few oil stocks like DVN that’s paying 9% dividend on which I sell calls on rallies and buy them back on pull backs. Earns me an additional 45% to 70% so I don’t know who all these people are that are struggling under BIdenomics but it’s not me. I’ve never made more money in my life. Bond as 5%+ is also why I haven’t bought any more rental properties, why do any hard work when I can buy government paper with a few clicks and cash in.
I think we’re at peak home builder stocks and retail stocks but the market can remain irrational a lot longer I can remain solvent so I’m sitting on the sidelines. I still hold put options on XHB and may double or triple down in a few days.
Can anyone truly be this fn stupid,
Realist (papascam, mpo, imgreen, jeffgreen)
“The blue states will reach 100% before the red states. The future republicans are less hostile to RE than the older generation.”
“Earns me an additional 45% to 70% so I don’t know who all these people are that are struggling under BIdenomics but it’s not me”
I had to chuckle when Hot Tub mentioned:
“Move to Seattle, Portland, Chicago, Baltimore, Atlanta, and L.A., and STEAL everything.” Realist claims to not know anyone suffering under bidenomics.
Realist with a real contrarian view, Seattle, Portland, Chicago, Baltimore, Atlanta, L.A. Detroit are going to lead the RE transition.
Oh yeah, I forgot dont talk politics (unless its politics slamming republicans).
Perhaps realist (papascam, mpo, jeffgreen, imgreen) can enlighten us on how Seattle, Portland, Chicago, Detroit, Baltimore, Atlanta, LA, are going to reach RE before all the republican held cities? I find it a little confusing. While hes on the subject of social security and retirement, which cities can we expect to experience severe pension crisis? realist very privileged to not know anyone suffering from bidenomics. Amazingly during the Trump presidency, realist claimed everyone was suffering.
While hes at it he can update us on the Walmarts in those cities. If you dont have a Walmart in your city, does that somehow give you a RE advantage?
Very perplexing?
Toot toot!
Realist (papascam, mpo, imgreen, jeffgreen)
“The blue states will reach 100% before the red states. The future republicans are less hostile to RE than the older generation.”
“Earns me an additional 45% to 70% so I don’t know who all these people are that are struggling under BIdenomics but it’s not me”
Im still struggling to understand why the blue states will reach 100% before the red states? Please explain.
Why are Seattle, Portland, Chicago, Detroit, San Francisco, L.A. Baltimore, Atlanta going to reach renewable energy before the red states? Is it perhaps related cities such as Chicago having no cars?
https://www.zerohedge.com/political/spree-robberies-car-thefts-drive-chicago-crime-new-highs
Perhaps its related to homocides?
https://wirepoints.org/chicago-new-orleans-were-the-nations-murder-capitals-in-2022-a-wirepoints-survey-of-americas-75-largest-cities/
Im just reaching because I dont have a clue, searching for some wisdom that Im obviously missing? Or maybe its bidenomics somehow?
Toot toot!
I remember this same Realist chastised me for doing better during recessions than in boom times. He said that boom times constituted 80% of history and that I missed out. Now he is claiming having never made so much money as now.
Incidentally my success in recessions was not due to me carpet bagging. It was due to not paying highly leveraged prices for the tangible things in my life.
“I remember this same Realist chastised me for doing better during recessions than in boom times.”
Join the club, realist chastised me years ago. Too bad we cant check history, I would have a field day going over realists postings over the years. Realist eating steak while everyone else eats hot dogs.
Realist no doubt the biggest multiple alias scam artist.
DVN cut the dividend I believe
I bet tourism in pismo beach is booming too. Expectations have been lowered.
38 PE with a 5.5% projected growth rate, no thanks!
Looks like it had a decent run up to their earnings. Many companies lower guidance over the quarter so they can report a beat. So, their price is lower over the quarter and then have a bump. Others don’t do this, so the price over the quarter is higher, but they get a drop at earnings. Either way, the price usually ends up about the same.
Apparently Walmart’s increase in sales was mostly groceries. Their growth in grocery sales was probably at the expense of higher priced stores, so it doesn’t bode well for those other stores or mean an overall robust retail sales increase for non-food items. Walmart’s food prices aren’t that low, so they’re at risk of losing those new customers to Aldi.
Grocery now accounts for around 60% of WMT’s sales. Grocery was up “high single digits”. They said they picked up market share but they were also picked up by inflation. They reported grocery inflation was “low-20s on a two year stack”.
General merchandise was up “low single-digit”. This does not bode well for retailers who are more dependent on general merchandise especially since WMT reported “softness in discretionary categories…”
So it appears as if general merchandise sales are anemic while grocery inflation is driving much of their overall sales increase.
To clarify, my comments were taken from the presentation slide titled “Walmart U.S. Merchandise category performance details”
So U.S. only
I heard that Aldi will be buying Winn-Dixie and Harvey’s stores.
Wow, it’s not even worth half of that. A 15-17 multiple would be plenty.
No surprise.
In the past, folks have been buying low. Now, taking profits off the table.
A business built on the pillars of welfare is feeling dandy today about their earnings report….meh. It’s better news that all the ones that closed in Chicago due to the looting I will give them that much. If they keep the garden center gates locked maybe another strong report on the horizon?