(Reuters) -Walmart forecast fiscal 2025 sales above Wall Street expectations on Tuesday and said it would buy smart-TV maker Vizio for $2.3 billion.
Shares in the U.S. retail giant rose 3% in premarket trading after it also announced its biggest dividend increase in more than a decade.
Walmart proposed to buy Vizio for $11.50 per share, a premium of 47% to the company’s closing price of $7.82 as of Feb. 12, the day before reports about deal talks emerged. Vizio shares were up about 15% at $10.96 in premarket trading on Tuesday.
Americans flocked to Walmart’s stores to buy its low-priced and discounted products during the holiday season late last year. However, still high interest rates and rising rents have raised concerns that consumers will remain constrained and a recovery in spending will be slower than previously expected.
The retailer reported a 3.9% rise in comparable sales, excluding fuel, for the fourth quarter ended Jan. 31, compared to LSEG estimates of 2.91%. Global eCommerce sales grew 23%.
Fourth quarter adjusted profit came in at $1.80 per share, compared to expectations of $1.65 per share.
Walmart said it expects consolidated net sales in fiscal 2025 to grow between 3% and 4%, largely above analysts’ expectations of a 3.4% rise.
The retailer raised its annual dividend by 9%.
“This year’s 9% increase is the largest in over a decade, and a sign of our confidence in our growth potential and cash flow,” said John David Rainey, executive vice president and chief financial officer at Walmart Inc.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Siddharth Cavale in New York; Editing by Susan Fenton)
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