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Walmart's Stock Update Following Citigroup's Positive Grade
Feb 20, 2025 4:04 PM - Andrew Wynn
Image credit: Google Images
- Citigroup upgraded Walmart (NYSE:WMT) to Positive but maintained a hold action, amidst a cautious sales and profit outlook for fiscal 2026.
- Despite strong Q4 performance with adjusted earnings per share of 66 cents and revenue of $180.55 billion, Walmart's stock price dropped 6.5% due to lower-than-expected future earnings guidance.
- The stock's decline significantly impacted the Walton family's net worth, with losses nearing $6 billion for each of the heirs.
On February 20, 2025, Citigroup updated its grade for Walmart (NYSE:WMT) to Positive, maintaining a hold action. At the time of this announcement, Walmart's stock price was $96.97. Walmart is a leading global retailer, known for its vast network of stores and e-commerce platforms. It competes with other retail giants like Amazon and Target.
Despite Citigroup's positive outlook, Walmart's stock experienced a decline following a cautious sales and profit outlook for the upcoming fiscal year. The company anticipates net sales growth for fiscal 2026 to be between 3% and 4%, which is below Wall Street's expectations of 4.2%. This conservative guidance contributed to an early trading dip in Walmart's stock.
Walmart's stock price dropped 6.5% to $97.27, even though the company reported a strong fourth-quarter performance. The retail giant achieved adjusted earnings per share of 66 cents and revenue of $180.55 billion. However, the positive quarterly results were overshadowed by the weaker-than-expected guidance for fiscal 2026, with forecasted earnings per share between $2.50 and $2.60, falling short of analyst expectations.
The stock's decline marked its worst day in over a year, significantly impacting the Walton family's net worth. The heirs to the retail giant's fortune, including Alice, Jim, and Rob Walton, each saw their net worth decrease by nearly $6 billion. The family of the late John Walton and Bud Walton's daughters also faced substantial losses.
Walmart's stock is currently trading at $97.04 on the NYSE, with a decrease of 6.96, approximately 6.69%. The stock's price ranged from a low of $96.68 to a high of $100.10 during the day. The company's market capitalization is approximately $779.56 billion, with a trading volume of 30,081,826 shares.
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