Walmart forecast fiscal 2025 sales above Wall Street expectations on Tuesday and said it would buy smart TV maker Vizio for $2.3 billion.
Shares in the U.S. retail giant rose 3% in premarket trading after it also announced its biggest dividend increase in more than a decade.
Walmart proposed to buy Vizio for $11.50 per share, a premium of 47% to the company’s closing price of $7.82 as of Feb. 12, the day before reports about deal talks emerged. Vizio shares were up about 15% at $10.96 in premarket trading on Tuesday.
Americans flocked to Walmart’s stores to buy its low-priced and discounted products during the holiday season late last year. However, still high interest rates and rising rents have raised concerns that consumers will remain constrained and a recovery in spending will be slower than previously expected.
The retailer reported a 3.9% rise in comparable sales, excluding fuel, for the fourth quarter ended Jan. 31, compared to LSEG estimates of 2.91%. Global eCommerce sales grew 23%.
Fourth quarter adjusted profit came in at $1.80 per share, compared to expectations of $1.65 per share.
Walmart said it expects consolidated net sales in fiscal 2025 to grow between 3% and 4%, largely above analysts’ expectations of a 3.4% rise.
The retailer raised its annual dividend by 9%.
“This year’s 9% increase is the largest in over a decade, and a sign of our confidence in our growth potential and cash flow,” said John David Rainey, executive vice president and chief financial officer at Walmart Inc.
Source: Economic Times