Walmart (WMT) is expected to reward its corporate employees with substantial bonuses, exceeding the target payout of 100%, according to a Bloomberg report. The move can be attributed to the company’s strong financial performance, fueled by robust sales amid rising stock price. WMT stock price has surged about 74% in 2024 so far.
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The retailer’s U.S.-based employees could receive bonuses of up to 120% of their eligible amount, with the final figure to be disclosed in January 2025. Importantly, Walmart calculates the annual bonus payout by evaluating both individual employee performance and the company’s overall financial results. It must be noted that last year, corporate employees received a bonus of 125%, the highest possible payout, according to a source familiar with the matter.
WMT’s Strong Performance Fuels Higher Bonuses
Walmart’s strong financial performance has supported its ability to reward employees generously. Importantly, the company has exceeded earnings expectations in the past eight quarters.
Last week, Walmart reported a 5.5% increase in third-quarter revenue to $169.6 billion, driven by higher global e-commerce sales and robust performance in its U.S. segment. Moreover, Walmart raised its Fiscal 2025 outlook, projecting net sales year-over-year growth of 4.8% to 5.1% compared with the previous guidance of 3.75% to 4.75%.
It is worth highlighting that WMT is benefiting from an increased focus on essential goods, such as groceries, positioning the company to effectively adapt to shifting consumer spending habits. Also, the company’s expanding advertising business has aided profitability growth.
Is WMT Stock a Good Buy?
Turning to Wall Street, WMT stock has a Strong Buy consensus rating based on 26 Buys and one Hold assigned in the last three months. At $93.18, the average Walmart price target implies a 3.03% upside potential.
