Walmart Inc (WMT) on Thursday reported a slower-than-anticipated revenue growth during the first quarter as e-commerce sales growth decelerated, while same-store sales registered their largest annual growth in nine years. On the other hand, the company warned that higher tariffs on Chinese imports would result in higher prices for the end-consumer.
Last week the Trump administration raised tariffs on $200 billion worth of Chinese goods from 10% to 25%. Such a decision is largely expected to bring about higher prices on thousands of items in various categories including electronics, furniture and clothing.
According to Walmarts Chief Financial Officer Brett Biggs, the worlds largest retailer will attempt to cushion the price effect, in part by obtaining products from different countries and by working with suppliers “costs structures to manage higher tariffs.”
Walmart shares closed higher for the fifth time in the past twelve trading sessions in New York on Thursday. It has also been the sharpest daily surge since May 10th. The stock went up 1.43% ($1.43) to $101.31, after touching an intraday high at $103.96, or a price level not seen since April 25th ($104.14).
Shares of Walmart Inc have risen 8.76% so far in 2019 compared with a 14.74% gain for the benchmark index, S&P 500 (SPX).
In 2018, Walmart’s stock went down 5.67%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
Walmarts total revenue went up 1% year-on-year to $123.9 billion during the quarter ended on April 30th, but fell short of the median analyst estimate ($125.03 billion), as exchange rate impact and lower international sales weighed.
Excluding fuel, sales at US stores, which are open for at least 13 months, grew 3.4% year-on-year during the first quarter, while exceeding a consensus of estimates pointing to a 3.1% growth.
Walmart said that e-commerce sales had risen 37% year-on-year during the latest quarter, slowing down from a 43% year-on-year growth in the prior three-month period.
Meanwhile, earnings per share, which exclude special items, were reported at $1.13 during the first quarter. In comparison, analysts on average had expected adjusted earnings of $1.02 per share.
According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Walmart Inc’s stock price, have a median target of $111.50, with a high estimate of $120.00 and a low estimate of $95.00. The median estimate represents a 10.06% upside compared to the closing price of $101.31 on May 16th.
The same media also reported that 14 out of 32 surveyed investment analysts had rated Walmart Inc’s stock as “Hold”, while 13 – as “Buy”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Walmart Inc (WMT) are presented as follows:
Central Pivot Point – $101.10
R1 – $103.36
R2 – $104.80
R3 – $107.06
R4 – $109.31
S1 – $99.66
S2 – $97.40
S3 – $95.96
S4 – $94.51
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