Walmart: shares jump on strong growth, dividend hike

(CercleFinance.com) - Walmart reported better-than-expected US comparable sales on Tuesday, as the retailer said it benefited from a "favorable economic environment," which sent its shares up about 4% in pre-market trading.


Walmart said that US comparable sales grew 4.2% in Q4, with US e-commerce sales up 43% due to the expansion of grocery pickup and delivery services, it said.

The company also said that US comparable sales on a two-year stack of 6.8% was its strongest growth in 9 years.

Total revenue rose by 1.9% to 138.8 billion dollars in the fourth quarter. Excluding currency factors, growth reached 3.1%.

Walmart reiterated its fiscal 2020 guidance and increased its annual cash dividend to 2.12 dollars per share, up 2% from the 2.08 dollars per share paid for the last fiscal year.

The move reflects confidence in future growth and the group's strong balance sheet, it said.

Investors welcomed the news, lifting the shares 3.8% in pre-market trading on Tuesday morning.

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