Walmart Q4 Earnings Top, Outlook Disappoints: ETFs in Focus

Core Insights - Walmart reported better-than-expected fourth-quarter fiscal 2025 results, but its outlook for slower sales growth led to a 6.5% drop in shares [1] Financial Performance - Earnings per share were 66 cents, exceeding the Zacks Consensus Estimate by a penny and improving 10% year-over-year [3] - Revenues increased by 5.3% year-over-year to $182.6 billion, surpassing the consensus estimate of$179.6 billion [3] - U.S. comparable sales rose by 4.6% year-over-year [3] - E-commerce sales grew by 16% globally, driven by in-store pickup, delivery, advertising platform, and online marketplace [3] Future Guidance - For Q1 of fiscal 2026, Walmart expects revenues to grow by 3%-4% to $159.9 billion and earnings per share of 57-58 cents, while the Zacks Consensus Estimate is$166.69 billion for revenues and 64 cents for earnings per share [4] - For fiscal 2026, Walmart anticipates revenues to grow by 3%-4% to $674.5 billion and earnings per share in the range of$2.50-$2.60, with the Zacks Consensus Estimate at$679.4 billion for revenues and $2.48 for earnings per share [5] Investment Opportunities - Investors looking to capitalize on Walmart's performance may consider ETFs with significant allocations to the retailer, including: - Consumer Staples Select Sector SPDR Fund (XLP) with a 10.8% allocation to Walmart [5] - Vanguard Consumer Staples ETF (VDC) with a 13.6% allocation to Walmart [6] - Fidelity MSCI Consumer Staples Index ETF (FSTA) with a 13.5% allocation to Walmart [7] - VanEck Vectors Retail ETF (RTH) with a 9.4% allocation to Walmart [9] - iShares U.S. Consumer Focused ETF (IEDI) with an 8.7% allocation to Walmart [10]