Walmart(WMT) ZACKS·2025-02-07 07:37Core Insights - The article discusses the ongoing Q4 earnings season, highlighting the performance of major companies including Walmart, Visa, AbbVie, and AstroNova, along with a scorecard of earnings results and analyst reports [2][5][6]. Earnings Season Overview - As of now, 293 S&P 500 members have reported Q4 results, representing 58.6% of the index [5]. - Total earnings for these companies have increased by 11.8% year-over-year, with revenues up by 5.6% [6]. - 77.5% of these companies have beaten EPS estimates, while 65.2% have surpassed revenue estimates [6]. - The overall earnings growth rate is expected to reach 12.3% with a 5.4% increase in revenues when including estimates from companies yet to report [7]. Company-Specific Highlights Walmart Inc. (WMT) - Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year, with a growth of 83.6% compared to 80.9% for the industry [9]. - The company benefits from a diverse business model and a strong omnichannel strategy, which has increased traffic across both physical and digital platforms [9][10]. - Despite raising its fiscal 2025 guidance, Walmart faces challenges from adverse currency movements and margin pressures due to shifts in product mix [11]. Visa Inc. (V) - Visa shares have outperformed the Zacks Financial Transaction Services industry, with a growth of 26.1% compared to 20.4% for the industry [12]. - The company reported fiscal first-quarter earnings that exceeded estimates by 3.4%, driven by strategic acquisitions and a shift towards digital payments [12][13]. - However, Visa is facing elevated operating expenses and volatility in cash volume from the Asia Pacific and U.S. regions [14]. AbbVie Inc. (ABBV) - AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry, with a growth of 13.3% compared to a decline of 0.6% for the industry [15]. - The company successfully beat Q4 estimates for both earnings and sales, navigating the loss of exclusivity for Humira by launching new immunology medicines [15][16]. - AbbVie anticipates a return to robust revenue growth in 2025, although it faces near-term challenges from biosimilar erosion and competitive pressures [16]. AstroNova, Inc. (ALOT) - AstroNova shares have underperformed the Zacks Technology Services industry, declining by 33.9% compared to an 80.9% increase for the industry [17]. - The company is experiencing margin compression and liquidity pressures, along with delayed revenue realization from postponed shipments [17]. - Despite these challenges, AstroNova's aerospace segment is growing, with T&M revenues up 22.3% year-over-year, driven by demand for flight deck printers [18][19].