Wall Street expectations Archives - The Entrepreneur Times

Walmart surpasses holiday expectations on Wall Street with a significant surge in e-commerce sales.

Posted on February 20, 2024September 1, 2024 by admin

On Tuesday, Walmart reported a 6% increase in quarterly revenue, fueled by robust holiday season sales and a double-digit growth in global e-commerce sales. The retail giant also disclosed its acquisition of smart TV manufacturer Vizio for $2.3 billion, aiming to boost its advertising business. Despite a more cautious approach from customers, with fewer items in their baskets but more frequent shopping, Walmart noted continued sales strength post-holiday.

Key financial figures for the quarter exceeded Wall Street expectations:

Earnings per share: $1.80 adjusted (vs. $1.65 expected)
Revenue: $173.39 billion (vs. $170.71 billion expected)

Walmart’s net income for the period ending January 31 was $5.49 billion, or $2.03 per share, compared to $6.28 billion, or $2.32 per share, in the same period the previous year. The company expects consolidated net sales to rise 4-5% in the fiscal first quarter and adjusted earnings of $1.48 to $1.56 per share. For fiscal 2025, Walmart anticipates consolidated net sales to climb 3-4% and adjusted earnings of $6.70 to $7.12 per share.

Despite economic challenges, Walmart has performed well, leveraging its value proposition, expanding revenue streams through advertising and third-party marketplaces, and introducing services like Walmart+. Comparable sales for Walmart U.S. increased by 4%, while global e-commerce sales surged 23%, exceeding $100 billion. Advertising revenue also grew globally by 33% and 22% in the U.S. year over year.

Walmart’s recent acquisition of Vizio is seen as an opportunity to accelerate growth in its high-margin, fast-growing business segments. In the U.S., customer transactions rose by 4.3%, although average spending per customer slightly declined. Walmart, in contrast to other companies, has announced plans to open or expand more than 150 stores over the next five years and has increased store manager wages. The company’s stock closed at $170.36, showing an 8% increase year-to-date, outperforming the S&P 500.

McDonald’s is on the verge of announcing its financial results. Here’s what you can anticipate.

Posted on February 5, 2024September 1, 2024 by admin

McDonald’s is anticipated to disclose its fourth-quarter earnings on Monday before the opening bell. According to analysts surveyed by LSEG (formerly Refinitiv), the expected figures are:

Earnings per share: $2.82
Revenue: $6.45 billion

The company had a strong start in 2023 with double-digit same-store sales growth and increased traffic in the first half. However, in the third quarter, McDonald’s noted a decline in spending from low-income consumers, impacting traffic to U.S. restaurants. Analysts predict a continuation of challenges in the fourth quarter.

Projections indicate a modest 4.7% growth in quarterly same-store sales, significantly lower than the 10.9% reported a year ago. McDonald’s has experienced a slowdown in price hikes, and the industry witnessed decreased foot traffic in November and December.

CEO Chris Kempczinski highlighted the negative impact of the Israel-Hamas conflict on sales, affecting regions both within and outside the Middle East. Calls for a boycott on social media emerged after McDonald’s Israeli franchisee offered discounts to soldiers.

Similar to McDonald’s, Starbucks faced boycotts related to the Middle East, resulting in a decline in U.S. traffic as occasional customers avoided its cafes.

For the year 2024, Wall Street projects McDonald’s to earn $12.53 per share, marking a 6.1% increase from the previous year, with an anticipated revenue of $27.14 billion, reflecting a 6.3% rise.

Despite challenges, McDonald’s stock has seen a 12% increase in the past year, reaching a market value of approximately $215 billion.

General Motors is scheduled to disclose its earnings ahead of the market opening. Here’s the anticipated forecast from Wall Street.

Posted on January 30, 2024September 1, 2024 by admin

General Motors is poised to announce its fourth-quarter earnings before the opening bell on Tuesday. According to average estimates compiled by LSEG (formerly Refinitiv), Wall Street is anticipating the following:

Adjusted earnings per share: $1.16
Revenue: $38.67 billion

If these projections hold, it would signify a 10.3% decline in revenue compared to the previous year and a substantial 45.3% drop in adjusted earnings per share. GM’s fourth-quarter results for 2022 included $43.11 billion in revenue, net income attributable to stockholders of $2 billion, and adjusted earnings before interest and taxes amounting to $3.8 billion.

In addition to quarterly earnings, investors are keenly observing for any residual or unforeseen costs stemming from the company’s new labor contract, negotiated last year with the United Auto Workers union. Moreover, the focus is on GM’s 2024 guidance.

Analysts on Wall Street anticipate a “flattish” forecast from GM compared to the previous year’s earnings. The normalization of favorable vehicle pricing, which has led to record profits in recent years, is expected. Simultaneously, cost-cutting measures are projected to help offset higher labor costs resulting from the UAW deal.

In November, GM CEO Mary Barra stated that the company is finalizing a budget for 2024 to “fully offset the incremental costs of our new labor agreements.”

GM reinstated its 2023 guidance in November, encompassing net income attributable to stockholders of $9.1 billion to $9.7 billion, or EPS of $6.52 to $7.02; adjusted earnings before interest and taxes of $11.7 billion to $12.7 billion, or $7.20 to $7.70 adjusted EPS; and adjusted automotive free cash flow of $10.5 billion to $11.5 billion.

The guidance factored in an estimated $1.1 billion EBIT-adjusted effect from approximately six weeks of U.S. labor strikes and some costs associated with an accelerated $10 billion share repurchase program announced in November.

Investors are also eager for updates on GM’s new electric vehicles and Cruise, GM’s majority-owned autonomous vehicle subsidiary currently under investigation following an October pedestrian accident in San Francisco. Cruise and GM released findings of internal investigations last week, highlighting cultural issues, regulatory challenges, and leadership shortcomings at the company but concluding that officials did not intentionally deceive regulators. Cruise remains under investigation by various entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.

Dollar General’s CEO, back at the helm, endeavors to steer a course correction amid regulatory penalties, disorganized store aisles, and public ridicule, including late-night satire

Posted on December 12, 2023August 31, 2024 by admin

Dollar General is facing significant challenges, including steep fines for safety violations, negative publicity, and shareholder dissent. In response, CEO Todd Vasos outlined a plan during an earnings call to address the company’s performance and public relations issues. The strategy includes placing more workers at the front of stores, slowing down new store openings, removing underperforming items from shelves, and enhancing efforts to maintain product availability.

This marks Vasos’ first earnings call since returning to the CEO position after the ousting of his predecessor, Jeff Owen. The leadership change was deemed necessary to restore stability and confidence, according to the board’s chairman, Michael Calbert.

Despite surpassing Wall Street’s expectations for the fiscal third quarter, Dollar General has faced a tough year. While it remains the fastest-growing retailer by store count, sales have slowed, the stock price has dropped significantly, and the company’s reputation has suffered due to federal scrutiny over work conditions.

The company has incurred over $21 million in fines from the Occupational Safety and Health Administration (OSHA) for safety violations. Shareholders have also voted for an independent audit into worker safety, a move opposed by the company. Dollar General’s challenges have been compounded by inflation and broader labor issues, attracting attention from media outlets like HBO’s “Last Week Tonight with John Oliver.”

Dollar General’s stock has declined by approximately 46% this year, significantly underperforming the S&P 500’s 18% gains. The company anticipates same-store sales to decline by about 1% to remain flat for the full year.

Vasos emphasized a “back to the basics” approach, focusing on retail fundamentals and addressing specific issues such as high turnover of store managers and inventory management. The company plans to invest $150 million in additional store labor hours this year, with a shift away from overreliance on self-checkout.

Changes noticeable to shoppers will include more employees at the front of stores, a reduction in the number of items sold (currently between 11,000 and 12,000), and a shift away from self-checkout as the primary checkout method. Dollar General aims to open 800 stores, remodel 1,500 stores, and relocate 85 stores in the next fiscal year, emphasizing a focus on existing stores and cost reduction.

Tag: Wall Street expectations

Walmart surpasses holiday expectations on Wall Street with a significant surge in e-commerce sales.

McDonald’s is on the verge of announcing its financial results. Here’s what you can anticipate.

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