uploaded image
Image courtesy of Shutterstock

Walmart Earnings Recap: Investors Cheer $2.3 Billion Vizio Deal

By:Thomas Westwater

Walmart stock surges after its positive Q4 earnings report

  • Walmart reports better-than-expected Q4 earnings.
  • A deal to buy Vizio will bolster Walmart's advertising footprint.
  • The stock price is possibly overbought after today’s rise.

Walmart Inc. (WMT) rose more than 4% on Tuesday, Feb. 20, after the retail giant reported better-than-expected fourth quarter fiscal earnings figures.

Earnings per share (EPS) came in at $1.80, which beat the $1.63 consensus figure. Revenue came in at $173.4 billion, a 5.7% year-over-year increase.

Investors also cheered e-commerce sales growth of 23% and global advertising business growth of 33%, of which 22% was from Walmart Connect in the United States. Consolidated revenue for the entire year was up 6% to $648.1 billion, while adjusted operating income grew 10.2%, which trended above sales growth, according to Walmart’s fourth quarter results press release.

Other highlights include:

  • Walmart raised its annual dividend 9%, the highest in over a decade.
  • The 2024 operating cash flow rose $6.9 billion.
  • The 2025 fiscal outlook calls for a 3%-4% growth, beating analysts’ expectations.

Walmart to acquire Vizio for $2.3 billion in surprise move

While Walmart’s numbers for the fourth quarter were impressive enough, the retailer also surprised investors by announcing that it would acquire Vizio (VZIO), the TV maker, for $2.3 billion in a move to bolster its advertising business.

The news took investors by surprise last week after rumors of the deal surfaced.

As consumers continue to cut the cable cord and move to streaming, the advertising opportunity has increased significantly. The move by Walmart will allow it to place its ads and sell ads to be featured on Vizio TVs, mostly through home screen ad placements. That mirrors a strategy used by other streamers such as Roku.

SmartCast, Vizio’s operating system, has nearly 20 million active users, growing about 400% since 2018, according to a press release from Walmart. Vizio also already has over 500 direct advertiser relationships, which should allow Walmart a seamless transition and the opportunity to keep many of those relationships, if not all.

While regulatory approval is needed, Vizio’s board and stockholders have already approved the transaction. Vizio jumped nearly 15% on the news, although its stock will no longer trade publicly upon the close of the deal.

Trading Walmart after earnings

WMT is trading at all-time highs above the 175 level through Tuesday afternoon. Technically, the Relative Strength Index (RSI) rose to 80, indicating overbought conditions, and prices are trailing slightly lower from earlier in the day. For traders expecting some consolidation in the near term, an iron condor is still a viable strategy post earnings with an implied volatility rank (IVR) of 43.5.


Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.