Motley Fool Asset Management Investment Analyst Shelby McFaddin and Greenwood Capital President Walter Todd join the “Morning with Maria” panel about today’s consumer, Walmart’s earnings, and Capital One’s acquisition of Discover Let’s discuss.
Walmart on Tuesday announced it would acquire smart TV maker Vizio for $2.3 billion, predicting fiscal 2025 sales to beat Wall Street expectations.
Shares of the US retail giant rose 3% in pre-market trading after it also announced its biggest dividend increase in more than a decade.
Walmart offered to buy Vizio for $11.50 a share, a 47% premium to the company’s closing price of $7.82 on February 12, the day before reports of the deal surfaced. Vizio stock rose about 15% to $10.96 in premarket trading Tuesday.
Walmart’s 3-for-1 stock split: What you need to know
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| WMT | Walmart Co., Ltd. | 170.36 | +1.07 | +0.63% |
| VZIO | Vizio Holdings | 9.53 | +0.02 | +0.21% |
Americans flocked to Walmart stores late last year to buy low-priced and discounted products during the holiday season. But still-high interest rates and rising rents continue to deter consumers, raising concerns that the recovery in spending will be slower than previously expected.
The company reported comparable sales excluding fuel rose 3.9% in the fourth quarter ended Jan. 31, compared with LSEG’s estimate of 2.91%. Global e-commerce sales he increased by 23%.
A shopping cart outside a Walmart store on August 13, 2023 in Richmond, California. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Adjusted earnings for the fourth quarter were $1.80 per share, compared to expectations of $1.65.
Walmart said it expects consolidated net sales to increase 3% to 4% in fiscal 2025, well above the 3.4% growth expected by analysts.
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The retailer raised its annual dividend by 9%.
“This year’s 9% increase is the largest in more than a decade and reflects our confidence in our growth potential and cash flow,” said John David Rainey, Walmart’s executive vice president and chief financial officer. Ta.
