Stock Market Nerd – Earnings Round-Up – February 24, 2024
Walmart (WMT)
Results:
- Beat revenue estimate by 1.5%.
- eCommerce revenue rose 23% Y/Y.
- Advertising revenue rose 33% Y/Y. Walmart Connect (its demand side platform run by The Trade Desk) enjoyed 22% Y/Y growth.
- Beat EBIT estimate by 7%.
- Beat 23.3% GPM estimate by 70 bps.
- Beat $1.64 GAAP EPS estimate by $0.39.
- 6.6% trailing 12-month return on assets vs. 4.6% Y/Y.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Balance Sheet:
- $9.9 billion in cash & equivalents. It will purchase Vizio for $2.3 billion to deepen its advertising presence.
- $55 billion in inventory.
- $46.9 billion in debt.
- Share count fell slightly Y/Y.
Annual Guidance & Valuation:
- Missed $7.08 EPS estimate by $0.17.
- Guided to 3.5% FXN Y/Y revenue growth & 5% FXN Y/Y EBIT growth.
Walmart trades for 25x 2024 EPS. EPS is expected to grow by 6.2% Y/Y.
The Home Depot (HD)
Results:
- Beat revenue estimate by 0.3%.
- Met GAAP GPM estimate.
- Met EBIT estimate.
- Beat $2.78 GAAP EPS estimate by $0.04.
ROIC = Return on Invested Capital
Balance Sheet:
- $3.8 billion in cash & equivalents.
- $21 billion in inventory.
- $44 billion in debt.
- Share count fell 2.4% Y/Y.
Annual Guidance & Valuation:
- 1% Y/Y revenue growth guide slightly missed 1.6% growth estimates.
- 14.1% EBIT margin guide slightly missed 14.2% margin estimates.
Intuit (INTU)
Results:
- Met revenue guidance & met its revenue estimate.
- Beat EBIT estimate by 12%.
- Beat $2.31 EPS estimate by $0.32.
- Doubled $0.63 GAAP EPS estimate.
Balance Sheet:
- $1.5 billion in cash & equivalents.
- $6 billion in debt.
- Share count rose slightly Y/Y.
Annual Guidance Updates & Valuation:
Intuit reiterated every piece of its fiscal year 2024 guidance. Analysts were expecting small raises across the board.
Intuit trades for 38x next 12 month (NTM) earnings and 33x NTM FCF. This year, earnings are expected to grow by 5.0% with FCF expected to grow by -0.6%.
