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Before the opening bell yesterday, Walmart’s (WMT - Free Report) first-quarter fiscal 2023 results disappointed, missing earnings estimates. The company also its slashed full-year profit outlook. The mega beat on revenue estimates and rasied its fiscal year sales outlook.
The shares of WMT tumbled 11% — the maximum in almost 35 years — after the company cut its earnings guidance. As such, ETFs having the highest allocation to the world's largest brick-and-mortar retailers like VanEck Vectors Retail ETF (RTH - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) will be in focus in the coming days.
Walmart Earnings in Focus
Earnings per share came in at $1.30, missing the Zacks Consensus Estimate of $1.46 and declining 23% from the year-ago earnings. Revenues rose 2.4% year over year to $141.57 billion and topped the consensus mark of $138.3 billion. U.S. comparable sales grew 3% (see: all Consumer Staples ETFs here).
The world's biggest retailer expects earnings per share to fall about 1% in fiscal 2023, rather than rise by mid-single digits as expected earlier. For second-quarter fiscal 2023, earnings per share are expected to match the previous expectation of a low to mid-single digit increase. However, Walmart expects second-quarter sales to rise 5% and raised its full-year sales forecast to 4%, in constant currency, from 3% earlier.
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Walmart takes the third spot with an 8.6% share (read: Amazon Posts Slowest Sales Growth in 2 Decades: ETFs in Focus).
VanEck Vectors Retail ETF has amassed $158.7 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Staples ETF also targets the broad consumer staples by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 99 stocks in its basket, with Walmart occupying the fifth position, having a 7.8% allocation. Vanguard Consumer Staples ETF is widely spread across household products, soft drinks, packaged foods & meats and hypermarkets & supercenters that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $6.7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 246,000 shares per day on average and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 105 stocks in its basket. Of these, Walmart takes the fifth spot with a 7.7% share in FSTA. Fidelity MSCI Consumer Staples Index ETF is widely diversified across food and staples retailing, beverages, food products and household products with double-digit exposure each (read: US Consumer Sentiment Dips in May: Will ETFs Suffer?).
Fidelity MSCI Consumer Staples Index ETF has amassed $1.1 billion in its asset base while trading in a moderate volume of around 203,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report)
iShares Evolved U.S. Discretionary Spending ETF is an actively managed ETF that employs data science techniques to identify companies with exposure to the discretionary spending sector. It holds 218 stocks in its basket. Walmart occupies the fourth position with a 6% share. IEDI is dominated by retailing with half of the portfolio, while food & staples retailing and consumer services round off the next two with double-digit exposure each.
iShares Evolved U.S. Discretionary Spending ETF has accumulated $17.3 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 6,000 shares a day, on average.
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Walmart Slumps on Q1 Earnings Miss: ETFs in Focus
Before the opening bell yesterday, Walmart’s (WMT - Free Report) first-quarter fiscal 2023 results disappointed, missing earnings estimates. The company also its slashed full-year profit outlook. The mega beat on revenue estimates and rasied its fiscal year sales outlook.
The shares of WMT tumbled 11% — the maximum in almost 35 years — after the company cut its earnings guidance. As such, ETFs having the highest allocation to the world's largest brick-and-mortar retailers like VanEck Vectors Retail ETF (RTH - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , and iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) will be in focus in the coming days.
Walmart Earnings in Focus
Earnings per share came in at $1.30, missing the Zacks Consensus Estimate of $1.46 and declining 23% from the year-ago earnings. Revenues rose 2.4% year over year to $141.57 billion and topped the consensus mark of $138.3 billion. U.S. comparable sales grew 3% (see: all Consumer Staples ETFs here).
The world's biggest retailer expects earnings per share to fall about 1% in fiscal 2023, rather than rise by mid-single digits as expected earlier. For second-quarter fiscal 2023, earnings per share are expected to match the previous expectation of a low to mid-single digit increase. However, Walmart expects second-quarter sales to rise 5% and raised its full-year sales forecast to 4%, in constant currency, from 3% earlier.
Below we have detailed the ETFs:
VanEck Vectors Retail ETF (RTH - Free Report)
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. Walmart takes the third spot with an 8.6% share (read: Amazon Posts Slowest Sales Growth in 2 Decades: ETFs in Focus).
VanEck Vectors Retail ETF has amassed $158.7 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 9,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Staples ETF (VDC - Free Report)
Vanguard Consumer Staples ETF also targets the broad consumer staples by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 99 stocks in its basket, with Walmart occupying the fifth position, having a 7.8% allocation. Vanguard Consumer Staples ETF is widely spread across household products, soft drinks, packaged foods & meats and hypermarkets & supercenters that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $6.7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 246,000 shares per day on average and has a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 105 stocks in its basket. Of these, Walmart takes the fifth spot with a 7.7% share in FSTA. Fidelity MSCI Consumer Staples Index ETF is widely diversified across food and staples retailing, beverages, food products and household products with double-digit exposure each (read: US Consumer Sentiment Dips in May: Will ETFs Suffer?).
Fidelity MSCI Consumer Staples Index ETF has amassed $1.1 billion in its asset base while trading in a moderate volume of around 203,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report)
iShares Evolved U.S. Discretionary Spending ETF is an actively managed ETF that employs data science techniques to identify companies with exposure to the discretionary spending sector. It holds 218 stocks in its basket. Walmart occupies the fourth position with a 6% share. IEDI is dominated by retailing with half of the portfolio, while food & staples retailing and consumer services round off the next two with double-digit exposure each.
iShares Evolved U.S. Discretionary Spending ETF has accumulated $17.3 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 6,000 shares a day, on average.