Walmart Inc. (NYSE:WMT) is rewarding corporate staff with above-target bonuses as the retail giant continues to post strong operating results.
It will pay U.S. corporate employees 121% of their eligible bonuses next month, exceeding the 100% target for at least the third straight year, marking a stark contrast with rivals like Home Depot Inc. (NYSE:HD).
The payout is close to last year's 122%, and bonuses at Walmart can reach up to 125% based on individual and company performance, Bloomberg reported on Monday, citing a memo.
Growth Strategy and $1 Trillion Market Milestone
Walmart delivered strong results in recent years by attracting cost-conscious shoppers with low prices and a broad product selection, while expanding its online operations and fast-delivery services to attract wealthier customers.
The company's market value hit $1 trillion for the first time this month as new CEO John Furner steps in to lead the retailer into a new phase focused on artificial intelligence.
Fourth-Quarter Earnings Beat and Revenue Growth
Last week, Walmart reported fourth-quarter adjusted earnings of 74 cents per share, beating estimates of 73 cents, while revenue rose 5.6% year-over-year to $190.70 billion, topping expectations of $190.43 billion.
The adjusted operating income rose 10.5% Y/Y.
Walmart U.S. revenue increased 4.6% to $129.2 billion, fueled by 27% e-commerce growth. International sales jumped 11.5% to $35.9 billion, led by Flipkart, China, and Walmex, while Sam's Club U.S. revenue grew 2.9% to $23.8 billion. Global e-commerce sales advanced 24%, and advertising revenue rose 37%, with Walmart Connect up 41%.
Walmart also raised its annual dividend 5% to 99 cents per share, marking its 53rd straight year of increases, and approved a new $30 billion buyback program.
Fiscal 2027 Outlook Misses Expectations
However, Walmart issued a weaker-than-expected fiscal 2027 outlook, projecting adjusted earnings of $2.75 to $2.85 per share and revenue of $731.12 billion to $738.19 billion, both below analyst estimates.
For the first quarter, it expects adjusted earnings of 63 to 65 cents per share and sales of $169.74 billion to $171.38 billion.
However, Amazon.com Inc. (NASDAQ:AMZN) recently surpassed Walmart to become the largest global company by revenue.
Walmart's total revenue for the recent fiscal year was $713.2 billion, up 4.7% Y/Y, trailing Amazon's full-year revenue of $716.9 billion.
Walmart stock has gained 13% year to date and 34% over the past year.
WMT Price Action: Walmart shares were up 2.28% at $125.79 at the time of publication on Monday, according to Benzinga Pro data.
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