Wal-Mart (WMT) is one of the most well-known retailers in the world thanks to its global presence and every day low prices.
It is also a very popular dividend growth stock. With 44 years of consecutive dividend increases, Wal-Mart is a member of the exclusive Dividend Aristocrats index – an exclusive group of dividend stocks with 25+ years of consecutive dividend increases.
Wal-Mart is a large, well-established company, but make no mistake – its growth days are far from over. In the company’s third-quarter earnings report (which was released on November 16), the company reported online sales growth of 50%, silencing questions about whether it can compete with Amazon in the eCommerce space. Wal-Mart’s stock surged to an all-time high following the announcement.
This article will analyze Wal-Mart’s third-quarter earnings release in detail and determine whether the company merits investment at current prices.
Business Overview
Wal-Mart is the world’s largest retail corporation, founded in 1962 by legendary entrepreneur Sam Walton. The company is arguably one of the biggest success stories in the history of American business.
The original Wal-Mart locations had one goal in mind: to provide the lowest possible prices to consumers, every day. This mission has helped Wal-Mart to deliver fantastic growth.
Today’s Wal-Mart is one of the world’s largest companies, serving more than 260 million weekly customers through 11,600 stores in 28 countries. Wal-Mart generated revenue of $485.9 billion in fiscal 2017 and currently employs about 2.3 million associates.
Wal-Mart reports business performance under three operating umbrellas:
The next section will discuss Wal-Mart’s third quarter financial performance in detail.
Third Quarter Financial Performance Summary
On November 16, Wal-Mart reported financial results for the third quarter of its fiscal 2018. Wal-Mart’s unusual financial calendar means that fiscal 2018 will conclude at the end of January 2018.
