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Walmart Inc. 8-K Report, Financial Results (Feb 20, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 20, 2024
Period End
February 20, 2024
Security
WMT
In the record · 2016–202610-K1110-Q328-K158

WMT filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 158 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’18May ’18
  2. Leadership change8-K · Apr ’22Apr ’22
  3. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 8-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.

Walmart reported strong fourth-quarter fiscal 2024 results (quarter ended January 31, 2024).

Consolidated total revenue rose 5.7% to $173.4 billiona (4.9% in constant currency), and operating income grew 30.4% to $7.3 billion, though much of that jump reflects lapping prior-year restructuring and opioid charges. Adjusted operating income rose 13.2%, outpacing net sales growth of 5.6%, and GAAP diluted EPS was $2.03 versus $2.32 a year earlier, with the difference driven by investment gains and losses. Adjusted EPS came in at $1.80, up 5.3%.

Walmart U.S. comparable sales grew 4.0% and eCommerce surpassed $100 billionb for the full year, with global advertising growing about 28% for the year to $3.4 billion. Full-year results were solid. Revenue reached $648.1 billion (up 6.0%), GAAP operating income rose 32.2%, and adjusted operating income rose 10.2%.

Operating cash flow increased $6.9 billion to $35.7 billionc, and free cash flow reached $15.1 billion after $20.6 billion of capital expenditures. Return on investment improved to 15.0% from 12.7%. Walmart also disclosed a 3-for-1 stock split (record date February 22, 2024; distribution after close February 23), a 9% dividend increase, and an agreement to acquire VIZIO to accelerate Walmart Connect.

For FY25, management guided to 3% to 4% constant-currency net sales growth, 4% to 6% operating income growth, and adjusted EPS of $6.70 to $7.12d pre-split ($2.23 to $2.37 post-split). Q1 guidance calls for 4% to 5% constant-currency sales growth and adjusted EPS of $1.48 to $1.56 pre-split. The FY25 operating income guidance is a modest step-up, and the outlook assumes a generally stable consumer, so investors will likely focus on whether margin expansion can sustain double-digit profit growth.

02—Key points

Key Highlights

  1. Total revenue grew 5.7% to $173.4 billion in Q4 FY24 (4.9% constant currency); full-year revenue reached $648.1 billion, up 6.0%.
  2. Operating income rose 30.4% to $7.3 billion in Q4, while adjusted operating income grew 13.2%, helped by currency (2.3%) and LIFO (1.0%) effects.
  3. GAAP diluted EPS was $2.03 versus $2.32 a year ago; adjusted EPS of $1.80 (up 5.3%) excludes a $0.23 net gain on equity investments.
  4. Free cash flow for FY24 was $15.1 billion, up $3.1 billion, on operating cash flow of $35.7 billion; capex rose $3.7 billion to $20.6 billion.
  5. eCommerce grew 23% globally and surpassed $100 billion for the year; global advertising grew about 28% to $3.4 billion.
  6. FY25 guidance calls for constant-currency net sales growth of 3% to 4% and operating income growth of 4% to 6%; adjusted EPS of $6.70 to $7.12 pre-split.
  7. The Board approved a 3-for-1 stock split (distributed after close February 23, 2024) and a 9% increase in the annual dividend; Walmart also agreed to acquire VIZIO.

03—Questions

Frequently Asked Questions

  1. Did Walmart's profitability improve in the fourth quarter?

    Yes on an operating basis. Operating income rose 30.4% to $7.3 billion and adjusted operating income grew 13.2%, ahead of 5.6% net sales growth. The reported comparison is flattered by lapping roughly $0.8 billion of restructuring charges in the prior year. GAAP EPS fell to $2.03 from $2.32, mainly because of investment gains and losses in the prior-year period.

  2. What is the company guiding for fiscal 2025?

    Walmart expects constant-currency net sales growth of 3% to 4%, operating income growth of 4% to 6%, and adjusted EPS of $6.70 to $7.12 pre-split ($2.23 to $2.37 post-split). Capex is expected at about 3.0% to 3.5% of net sales, and the guidance assumes a generally stable consumer.

  3. How strong is Walmart's cash generation and balance sheet?

    Operating cash flow was $35.7 billion for FY24 and free cash flow was $15.1 billion. The company ended the year with $9.9 billion of cash and $46.9 billion of total debt, and it repurchased $2.8 billion of stock. Free cash flow growth was held back by a $3.7 billion increase in capital spending.

  4. What does the stock split mean for shareholders?

    Shareholders of record at the close of business on February 22, 2024 receive two additional shares for each share held, so the stock moves to a 3-for-1 basis. The split does not change the total value of an investment; it changes the per-share figures, such as EPS, which the company reports on both pre-split and post-split bases.

  5. What drove growth in the eCommerce and advertising businesses?

    Global eCommerce sales rose 23%, passing $100 billion for the year, and Walmart U.S. eCommerce grew 17%, led by pickup and delivery. Global advertising grew about 28% for the year to $3.4 billion, with Walmart Connect in the U.S. up 22%. The planned VIZIO acquisition is intended to further accelerate Walmart Connect.

04—Continue

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