Walmart Inc. (NYSE: WMT) reported its fourth quarter financial results and missed earnings estimates. Shares were down 9 percent after open on Tuesday.
Walmart reported revenue of $136.3 billion, increasing 4.1 percent year over year, and beating analysts’ estimates of $134.9 billion. The company reported an adjusted EPS of $1.33, missing analysts’ estimates of $1.37.
Walmart’s U.S. comparable store sales increased 2.6 percent year over year, beating analysts’ estimates of 2.2 percent. Traffic at Walmart stores increased 1.6 percent. Operating income fell sharply by 28 percent year over year, dropping to $4.5 billion for the quarter.
Walmart international net sales were $33.1 billion, increasing 6.7 percent year over year. Sam’s Club reported same store sales growth of 2.4 percent, driven by a 4.3 percent increase in traffic growth. Nine out of eleven of Walmart’s markets posted positive same store sales.
E-Commerce sales grew by 23 percent for the quarter, but showed signs of slowing down quarter over quarter. The previous quarter, Walmart reported e-Commerce sales growth of over 50 percent, now it’s more than halved.
As for the fiscal year, Walmart’s e-Commerce sales have increased 44 percent year over year.
"We have good momentum in the business with solid sales growth across Walmart U.S., Sam's Club and International. We're making real progress putting our unique assets to work to serve customers in all the ways they want to shop” said Doug McMillon President and CEO, Walmart.
For fiscal year 2019, Walmart forecasts an EPS of $4.75 to $5.00 on an estimated same store sales growth of 2 percent in U.S. Walmart locations. Sam’s Club same store sales are forecasted to grow 2 percent, while e-Commerce sales are expected to grow 40 percent.
“We're making decisions to position the business for success and investing to win with customers and shareholders." added McMillion.