The Early Reaction To Walmart's Q4

Retail behemoth Walmart Inc WMT reported fourth-quarter results Thursday morning, highlighted by a "very strong" comp performance and a commitment to raise the associate average pay to above $15 per hour, Jefferies analyst Steph Wissink said on CNBC.

Walmart reported quarterly earnings of $1.39 per share, which missed the analyst consensus estimate of $1.50. The company reported quarterly sales of $152.10 billion, which beat the analyst consensus estimate of $148.47 billion.

What To Know: Walmart reported strength across all of its operating units with notable momentum in Sam's Club that showed a membership growth of nearly 13%, Wissink said. The health of Walmart's overall topline remains very strong and the company is increasing its investment spend in the business to remain competitive and stay ahead of demand.

Some of the investments in the business will focus on automation and fulfillment centers to help accelerate sales and profit growth. The company is also investing in media and advertising platforms for its vendors.

Related Link: $1,000, 5 Years Later: Walmart Stock A Beacon For Investors

Why It's Important: Walmart also included in its hourly pay announcement near the very top of the earnings release and the company "sets the standard across retail," the analyst said. Walmart earns the title of one of the largest employers, especially in smaller towns.

Investors may be approaching the higher spend across its business and people with some caution but many of these investments could offset the rising wage growth, she said.

What's Next: Walmart's Investor Day presentation will likely focus on management's new investments plan to "help lateralize some of the effects of the rising investments that they are doing," the analyst said.

Walmart's stock traded down 6% to $138.15 at publication time.