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Walmart Beats on Q1 Earnings, Lifts View: ETFs in Focus
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Before the opening bell yesterday, Walmart (WMT - Free Report) reported first-quarter fiscal 2024 results, wherein it surpassed both earnings and revenue estimates and raised its outlook for the full year.
Shares of WMT rose 1.3% at the close following the quarterly results. This has put ETFs having the highest allocation to the world's largest brick-and-mortar retailers in focus. These include VanEck Vectors Retail ETF (RTH - Free Report) , Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , and iShares U.S. Consumer Focused ETF (IEDI - Free Report) .
Walmart’s Earnings in Focus
Earnings per share came in at $1.47, outpacing the Zacks Consensus Estimate of $1.32 and improving 13% from the year-ago earnings. Revenues rose 7.6% year over year to $152.3 billion and topped the consensus mark of $149.6 billion. U.S. comparable sales grew 7.4%.
Walmart is benefiting from the resilience of its massive grocery business, which is enabling the company to grab more sales even as U.S. shoppers think twice before buying discretionary goods. U.S. comparable grocery sales grew in the low double-digits, while general merchandise sales declined in mid-single-digits (read: Inflation Drops Below 5% Since 2022: ETFs Set to Gain).
The mega-retailer lifted fiscal 2024 guidance. It now expects revenues to rise 3.5% compared with the previous projection of 2.5-3%. It expects earnings per share in the range of $6.10-$6.20, up from $5.90-$6.05. For second-quarter fiscal 2024, earnings per share are expected to be in the range of $1.63-$1.68
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 8.4% share.
VanEck Vectors Retail ETF has amassed $145.4 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETF Areas to Benefit/Lose from Cooling U.S. inflation).
Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM - Free Report)
Qraft AI-Enhanced U.S. Large Cap Momentum ETF is an actively-managed exchange-traded fund that aims to provide investors with long-term capital appreciation by utilizing a proprietary artificial intelligence system to select large-capitalization U.S. stocks to be held in the portfolio. It holds 50 stocks in its basket, with Walmart occupying the second spot at 7.78%. Consumer cyclicals is the top sector with a 29.6% allocation, followed by industrials, technology and consumer non-cyclicals.
Qraft AI-Enhanced U.S. Large Cap Momentum ETF has accumulated $10.7 million in its asset base while trading in a volume of 2,000 shares a day on average. It charges 75 bps in annual fees.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 106 stocks in its basket. Of these, Walmart takes the fourth spot with a 7.5% share in FSTA (see: all Consumer Staples ETFs here).
Fidelity MSCI Consumer Staples Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 133,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Consumer Staples ETF also targets the broad consumer staples space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 101 stocks in its basket, with Walmart occupying the fourth position, having a 7.5% allocation. Vanguard Consumer Staples ETF is widely spread across soft drinks, household products, packaged foods & meats, and consumer staples merchandise retail that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 103,000 shares per day, on average, and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 171 stocks in its basket, with Walmart occupying the third position at 6.7% share. IEDI is dominated by consumer discretionary distribution & retail with nearly half of the portfolio, while consumer staples distribution & retail, and consumer services round off the next two with double-digit exposure each.
iShares U.S. Consumer Focused ETF has accumulated $13.5 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 1,000 shares a day, on average.
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Walmart Beats on Q1 Earnings, Lifts View: ETFs in Focus
Before the opening bell yesterday, Walmart (WMT - Free Report) reported first-quarter fiscal 2024 results, wherein it surpassed both earnings and revenue estimates and raised its outlook for the full year.
Shares of WMT rose 1.3% at the close following the quarterly results. This has put ETFs having the highest allocation to the world's largest brick-and-mortar retailers in focus. These include VanEck Vectors Retail ETF (RTH - Free Report) , Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) , Vanguard Consumer Staples ETF (VDC - Free Report) , and iShares U.S. Consumer Focused ETF (IEDI - Free Report) .
Walmart’s Earnings in Focus
Earnings per share came in at $1.47, outpacing the Zacks Consensus Estimate of $1.32 and improving 13% from the year-ago earnings. Revenues rose 7.6% year over year to $152.3 billion and topped the consensus mark of $149.6 billion. U.S. comparable sales grew 7.4%.
Walmart is benefiting from the resilience of its massive grocery business, which is enabling the company to grab more sales even as U.S. shoppers think twice before buying discretionary goods. U.S. comparable grocery sales grew in the low double-digits, while general merchandise sales declined in mid-single-digits (read: Inflation Drops Below 5% Since 2022: ETFs Set to Gain).
The mega-retailer lifted fiscal 2024 guidance. It now expects revenues to rise 3.5% compared with the previous projection of 2.5-3%. It expects earnings per share in the range of $6.10-$6.20, up from $5.90-$6.05. For second-quarter fiscal 2024, earnings per share are expected to be in the range of $1.63-$1.68
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 8.4% share.
VanEck Vectors Retail ETF has amassed $145.4 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETF Areas to Benefit/Lose from Cooling U.S. inflation).
Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM - Free Report)
Qraft AI-Enhanced U.S. Large Cap Momentum ETF is an actively-managed exchange-traded fund that aims to provide investors with long-term capital appreciation by utilizing a proprietary artificial intelligence system to select large-capitalization U.S. stocks to be held in the portfolio. It holds 50 stocks in its basket, with Walmart occupying the second spot at 7.78%. Consumer cyclicals is the top sector with a 29.6% allocation, followed by industrials, technology and consumer non-cyclicals.
Qraft AI-Enhanced U.S. Large Cap Momentum ETF has accumulated $10.7 million in its asset base while trading in a volume of 2,000 shares a day on average. It charges 75 bps in annual fees.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
Fidelity MSCI Consumer Staples Index ETF tracks the MSCI USA IMI Consumer Staples Index, holding 106 stocks in its basket. Of these, Walmart takes the fourth spot with a 7.5% share in FSTA (see: all Consumer Staples ETFs here).
Fidelity MSCI Consumer Staples Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 133,000 shares a day, on average. FSTA charges 8 bps in annual fees from investors and 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 space by tracking the MSCI US Investable Market Consumer Staples 25/50 Index. It holds 101 stocks in its basket, with Walmart occupying the fourth position, having a 7.5% allocation. Vanguard Consumer Staples ETF is widely spread across soft drinks, household products, packaged foods & meats, and consumer staples merchandise retail that make up for a double-digit allocation each.
Vanguard Consumer Staples ETF manages a $7 billion asset base and charges a fee of 10 bps per year. VDC trades in a good volume of around 103,000 shares per day, on average, and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares U.S. Consumer Focused ETF (IEDI - Free Report)
iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 171 stocks in its basket, with Walmart occupying the third position at 6.7% share. IEDI is dominated by consumer discretionary distribution & retail with nearly half of the portfolio, while consumer staples distribution & retail, and consumer services round off the next two with double-digit exposure each.
iShares U.S. Consumer Focused ETF has accumulated $13.5 million in its asset base and charges 18 bps in fees per year. Volume is paltry for IEDI as it exchanges 1,000 shares a day, on average.