Walmart Tops Earnings Expectations but Guidance Weakens Stock

Walmart (WMT 0.27%) delivered strong results in its fourth-quarter earnings report. The retail giant posted strong top-line growth due to a robust holiday season and solid growth across all segments. Walmart reported a 7.3% increase in global revenue, and U.S. same-store sales grew 8.3% with eCommerce sales up 17%. Walmart also announced a dividend increase of 7%.

However, the company also issued a weaker-than-expected outlook for the year ahead, citing uncertainty around consumer spending and the broader economy. This sent Walmart's stock lower in after-hours trading, as investors weighed the strong fourth-quarter performance against the company's cautious outlook.

Yahoo Finance's Brad Smith breaks down the earnings report and discusses how Walmart's outlook affects the broader economy. Smith notes that while the company beat expectations, the outlook was less certain and could signal a slowdown in consumer spending in the coming months. He also discusses the implications for other retailers, such as Home Depot and General Mills, whose stocks moved in opposite directions on the news.

Smith also breaks down the implications for investors, noting that Walmart's stock could remain volatile in the near term as investors digest the news. He suggests taking a long-term view on the stock, as the company is well-positioned to benefit from any economic recovery. He also advises investors to look for opportunities in other sectors, such as technology and healthcare, which could benefit from an economic re-opening.