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Walmart’s 4Q Results: Can the Retail Giant Impress Investors?

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Feb. 16 2017, Published 1:11 p.m. ET

Upcoming results

Walmart (WMT) is scheduled announce its fiscal 4Q17 and full-year fiscal 2017 results on February 21. The retail giant’s stock was up 12.8% in 2016 and performed better than the S&P 500 Index (SPX), which was up 9.5%. However, on a YTD (year-to-date) basis, Walmart’s stock price has fallen 2.0% to $67.77 as of February 13. The S&P 500 Index has moved up by 4.0% on a YTD basis as of February 13.  

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Comparison with peers

As of February 13, the stock prices of Walmart peers Target (TGT), Costco (COST), Kroger (KR), Dollar Tree (DLTR), Dollar General (DG), and Whole Foods Market (WFM) have given returns of -10.3%, 7.4%, -3.8%, 0.7%, 2.6%, and -2.4%, respectively, since the start of the year.

On a YTD basis, Walmart’s stock has underperformed the Consumer Staples Select Sector SPDR Fund (XLP), which has risen 3.7%. The XLP ETF has 5.4% exposure to Walmart.

Performance so far

In the first nine months of fiscal 2017, which ended on October 31, 2016, Walmart’s revenue rose 0.7% to $354.9 billion. Higher same-stores sales in the first nine months of fiscal 2017 were offset by $8.3 billion of adverse currency movements and a decline of $553 million in fuel sales due to lower fuel prices at the company’s Sam’s Club segment.

Series overview

In this series on Walmart’s upcoming fiscal 4Q17 results, we’ll discuss analysts’ expectations from the company’s revenue and earnings. We’ll also discuss the company’s online initiatives, valuations, and analysts recommendations.

The next part of this series will focus on the company’s revenue expectations.

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