Walmart Stock Surges on Positive News from The Motley Fool

Walmart's strong earnings report and key announcements, including a dividend increase and acquisition, are driving stock prices higher.

On Tuesday morning, Walmart (WMT 3.35%) reported its fiscal fourth-quarter 2024 earnings, impressing investors and causing its stock to rise by 3.4%. The world's largest retailer outperformed expectations, with strong results that easily surpassed estimates. Additionally, Walmart raised its dividend and announced a $2.3 billion acquisition of TV maker Vizio.

During the fiscal quarter, which ended on Jan. 26, Walmart U.S. saw a 4% increase in comparable sales, driving overall revenue up by 5.7% to $173.4 billion. E-commerce sales also showed strong growth, surpassing $100 billion in revenue for the year. The company also reported a 33% growth in its global advertising business, tapping into a new revenue stream and showing significant improvement in its gross margin.

CEO Doug McMillon expressed confidence in the business, stating that the team delivered a great quarter and finished off a strong year. Looking ahead, the company expects revenue growth of 3% to 4% in fiscal 2025 and operating income growth of 4% to 6%. On the bottom line, Walmart forecasted $6.70 to $7.12 in pre-split adjusted EPS, demonstrating an optimistic outlook for the future.

In addition to its strong financial performance, Walmart is executing a 3-for-1 stock split next week, indicating management's confidence in the company's future prospects. The retailer's newer initiatives in areas such as e-commerce and advertising are paying off, and the business looks as strong as it ever has. With its impressive earnings report and strategic acquisitions, Walmart is a good bet to keep moving higher from here.