U.S. Movers: Capital One Financial, Discover Financial, Home Depot, Walmart, Vizio

Scott Peters
20 Feb, 2024
New York City

Walmart increased 2.9% to $175.36 after the general merchandise and grocery retailer reported better-than-expected revenue and earnings in the fourth quarter. 

Total revenues in the fourth quarter increased 5.7% to $173.4 billion from $164.0 billion, consolidated net income declined to $5.5 billion from $6.3 billion, and diluted earnings per share decreased to $2.03 from $2.32 a year ago. 

For the full fiscal year 2023 ending in January, revenue rose 6% to $648.1 billion from $611.3 billion, net income advanced 32.8% to $15.5 billion from $11.7 billion, and diluted earnings per share rose 32.8% to $5.76 from $4.29 a year ago. 

The company guided fiscal first quarter sales to increase between 4% and 5% and adjusted earnings per share before the split to range between $1.48 and $1.56 or post-split between 49 cents and 52 cents. 

Walmart stock is set to be split 3-to-1 on February 23; after the close, the stock split will be awarded to shareholders on record on February 22. 

Separately, Walmart said it plans to acquire smart TV maker Vizio for $2.3 billion and boost its advertising business through the ad-free streaming content on its television sets. 

Vizio jumped 16% to $11.06 and extended its two-day gain to over 40% when the news of a possible deal emerged. 

Home Depot decreased 2.6% to $352.70 after the specialty retailer reported better-than-expected revenue and earnings in the fourth quarter despite consumers retrenching from larger do-it-yourself projects. 

Revenue in the fiscal fourth quarter ending in January declined 2.9% to $34.8 billion, net income dropped 16.7% to $2.8 billion from $3.4 billion, and diluted earnings per share fell 14.5% to $2.82 from $3.30 a year ago. 

Total sales in the fiscal year 2023 decreased by 3% to $152.7 billion, comparable sales fell by 3.2%, and comparable sales in the U.S. decreased by 3.5%. 

Net earnings in the year decreased 11.5% to $15.1 billion from $171. billion, and diluted earnings per share fell 9.5% to $15.11 from $16.69 per diluted share in fiscal 2022. 

The company's board of directors approved a 7.7% increase in its quarterly dividend to $2.25, payable on March 21 to shareholders on record on March 7. 

The company estimated total sales in fiscal 2024 to increase by 1%, including the 53rd week, but comparable sales declined by 1.0% in the 52-week period. 

The retailer estimated diluted earnings per share to increase by 1% for the 53-week period. 

Capital One Financial decreased 3% to $133.0 after the company agreed to acquire Discover Financial in an all-stock deal for $35.3 billion. 

The deal was announced late Monday, and after the merger, Capital One shareholders would control 60% and Discover Financial shareholders would control 40% of the combined company.