Walmart Post-Earnings: Q4 Was Solid, While EPS Guidance Scared The Street


  • Walmart Inc. inventory-to-sales ratio had the best quarter of the last 8 – returning to normal.
  • Quarterly comps – thanks to average ticket – remain in high single digits.
  • Grocery inflation still remains an issue. WMT management said that it hasn’t really tempered much in last three quarters;
  • Walmart is now in a position in 2023 to fix the externally-generated issues from Covid, supply chains issues, etc.

Walmart Eliminating Hundreds Of Corporate Roles In Restructuring Effort

Justin Sullivan

Prior to the awful EPS guidance for fiscal ’24 (ends January ’24), the Street was expecting Walmart Inc. (NYSE:WMT) to print $1.48 in the first fiscal quarter (or April ’23 quarter) of ’24. Instead, that number has been slashed to $1.30, and the expectation is


WMT EPS estimate revisions (IBES data by Refinitiv )


Walmart revenue estimate revisions (IBES data by Refinitiv )


WMT inventory-to-sales ratio (quarterly earnings )

# of Qtr’s Avg op mgn
4-qtr avg 4.02%
8-qtr avg 4.05%
12-qtr avg 4.05%
20-qtr avg 4.10%
40-qtr avg 4.60%

Valuation metric (stk @$142) current value
Price-to-sales 0.63x
P/E ’24 23x
Exp EPS gro – 3 year avg 8%
Exp rev gro – 3 year avg 3%
Price-to-book: 4.6x
Price-to-cash-flow 13x
Price-to-free-cash-flow 31x
Free-cash-flow yield 2%
Dividend yield 1.33%
Morningstar moat wide


Walmart weekly chart (Worden )

Disclosure: I/we have a beneficial long position in the shares of WMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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