Janhvi Bhojwani | CNBC
Doug McMillon, CEO of Walmart, speaking at the Business Roundtable CEO Innovation Summit in Washington, DC on Dec. 6th, 2018.
Walmart analysts are staying bullish after the company reported strong earnings Tuesday. The retail giant said its e-commerce sales surged a whopping 43 percent while same-store sales grew 4.2 percent over the holidays from the previous year.
Many analysts say this is Walmart‘s strongest overall report in years despite last week’s steep decline in retail sales.
The company’s stock jumped as high as 4 percent in morning trading and is now trading over 3 percent at $103.76.
“WMT’s dot-com growth continues to benefit from the expansion of online grocery pickup and delivery,” Bank of America’s Robert Ohmes said. “This was the best F4Q comp performance in 15 years,” and “WMT continues to see strong performance in its US stores,” he wrote in an investor note.
Cowen’s Oliver Chen said he was, “excited,” by the results and the e-commerce growth, “was in-line with our expectations as a combination of continued curbside momentum and a broadening assortment drove strong results.”
“Overall we view the result as solid, with the U.S. comp beat most notable,” said Stifel’s Mark Astrachan. “We think it indicates the company’s strategy to invest in price and e-commerce continues to drive comp out performance.”
Analysts at Wells Fargo were slightly more subdued saying, “In the end, the quarter was very much in line with the company’s long term strategy and outlook, but the issue with the stock remains the same for us – the stock looks fairly valued given its limited growth and the lack of visibility on this changing anytime soon.”
Here’s what else analysts think:
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