Early Bird
Posts
Walmart's 2026 Automation Goal

Walmart's 2026 Automation Goal

Today is Wednesday, April 5, 2023.

New to this newsletter? Sign up here.

Walmart's 2026 Automation Goal

Walmart (NYSE: WMT) outlined a series of workforce and financial goals during the company's 2023 Investment Community meeting on Tuesday.

Details: Walmart’s goal is to have about 65% of stores serviced by automation by the end of the fiscal year 2026, including 55% of the fulfillment center volume. The company says that this will improve unit cost averages by 20%. Walmart also expects to have less physical labor and a higher rate of pay.

Also: The company also reiterated its 2024 Q1 and full-year guidance. In the current quarter, that includes a 4.5% to 5% increase in sales and adjusted earnings per share between $1.25 to $1.30.

Background: The automation goal comes as Walmart recently cut over 2,000 jobs in e-commerce warehouses.

Stock Price: Walmart’s stock is up about 2% so far in 2023. The stock is also up 4% in the last 30 days.

Final Thoughts: Walmart’s automation plans aren’t surprising because the retail giant has leveraged a lot of new technologies throughout the years. The real question for Walmart going forward is about the impact of higher interest rates on consumer spending.

Notables

Notable Earnings Today: Simply Good Foods (Nasdaq: SMPL), Conagra (NYSE: CAG), Richardson Electronics (Nasdaq: RELL), Simulations Plus (Nasdaq: SLP), Schnitzer Steel (Nasdaq: SCHN), Seadrill (NYSE: SDRL).

Notable IPOs Today: ARB IOT Group Limited Ordinary Shares (Nasdaq: ARBB).

Notable Equity Crowdfunding Campaigns Ending Today: Hey Say (SMBX), Barbacoa (Mainvest).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Trade Balance / Imports / Exports (8:30 a.m. ET), Services PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Exxon Anticipates Profit Troubles

Photo by Raymond Kotewicz / Unsplash

Exxon Mobil (NYSE: XOM) could be facing some economic headwinds for the quarter that might hit its bottom line.

Details: In a regulatory update to investors late Tuesday afternoon, Exxon says that its profits in the first quarter will take a hit thanks to lower gas and oil prices.

Background: After energy prices spiked last year, oil prices have been steady in 2023 thanks to lower demand and calmer inflation.

Stock Price: Exxon’s stock is up nearly 8% in 2023. Last year the stock was up 80%.

Final Thoughts: The recent decision by OPEC to cut oil production might increase energy prices in the second quarter.

Ethereum Showing Strength Again

The price of the cryptocurrency Ethereum jumped 5% on Tuesday to over $1,900, a level that it hasn’t reached since August.

Powering the Story: There’s a lot of enthusiasm for Ethereum mainly due to the upcoming Shanghai and Capella upgrades, which will improve the blockchain.

Bigger Picture: Most cryptos ticked up on Tuesday, although not as strong as Ethereum.

Final Thoughts: The upgrades are slated to happen in one week on April 12. For the next week, there’s a chance that Ethereum might get some nice attention.

‌‌