Walmart to report Q4 earnings next week: What to expect - Yahoo Finance

Wholesale retailer Walmart (WMT) is set to report fourth-quarter earnings on Tuesday, February 20. The chain is expected to report less than $171 billion for the quarter. Yahoo Finance Retail Reporter Brooke DiPalma previews the key figures investors should watch ahead of the earnings report, also commenting on Walmart's reported talks to acquire TV maker Vizio (VZIO).

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Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JOSH LIPTON: Walmart is set to report its fourth quarter results next week as Wall Street expects the retailer to grow its sales again despite consumer spending losing steam. Here with the key themes to watch is Yahoo Finance's very own Brooke DiPalma. Brooke.

BROOKE DIPALMA: Good afternoon, Josh. Good afternoon, Julie. I mean certainly another strong quarter expected from America's biggest retailer here. Revenue expected to come in at $170.6 billion and adjusted earnings per share expected to come in at $1.65.

Now the Street yet again is expecting another strong quarter of sales. Overall, US same-store sales are expected to jump 3.2%. But similar to what we're seeing across other earnings is that's not as high of a rate of growth as what we saw at the same time period a year ago when we saw 8.8% year over year jump for US same-store sales. But Walmart US leading that business. There's slight uptick in traffic, a slight uptick in ticket, and e-commerce growth expected to show-- to prove strong same-store sales here in the US.

Bank of America keeping a close eye on grocery share gains and trade down to continue supporting Walmart store and online business. Telsey also keeping a close eye on-- Telsey Advisory group also keeping a close eye on those grocery share gains and any shift that we're seeing back towards discretionary spending. Margin expansion also something the Street's keeping a close eye on as well really to understand how this is all playing out in this deflationary food environment that we're seeing.

JULIE HYMAN: Yeah. And by the way, Walmart shares had a record today. So obviously-- and we've seen so many stocks--

BROOKE DIPALMA: Lots of them.

JULIE HYMAN: --rise into their earnings reports. There's also the acquisition that Walmart is making.

BROOKE DIPALMA: Potential.

JOSH LIPTON: Potential acquisition of Vizio, the connected TV company. Maybe we'll get some news, some confirmation of that.

BROOKE DIPALMA: Yeah, a reported $2 billion potential acquisition there for the connected TV platform Vizio. And really what they're looking to do here, many experts telling me, they want to be the next Amazon Prime. They want to compete with them. They want consumers' data here. And by potentially acquiring Vizio, that would allow them to get this insight into consumer data, on their viewership, on how customers' behavior is, especially as they want to ramp up that Walmart Plus business.

But there's a lot of questions about this potential acquisition. First of all, the price point seems kind of high according to some. And in addition to that, what does this mean for other retailers that sell Vizo TVs? You're thinking Costco, Best Buy, Target. So where does that put Vizio then there?

But really Walmart has this track record with acquisitions. We saw them buy jet.com. They discontinued that, but they learned a lot from it.

In addition, we saw them buy Moosejaw and Bonobos. They resold that. And so really this trial and error sort of approach that we've seen Walmart take before and so potentially this will happen again.

JOSH LIPTON: Yeah. I think how much Amazon knows about you, Brooke, what you like, what you don't.

JULIE HYMAN: Quite cheering.

[INTERPOSING VOICES]

BROOKE DIPALMA: --think about it.

JOSH LIPTON: I'm sure Walmart would like the same info.

BROOKE DIPALMA: Exactly.

JOSH LIPTON: I don't doubt it Thank you, Brooke. Appreciate it.

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