Retail stock to watch this morning: Wal-Mart Stores Inc(NYSE: WMT)

Retail stock to watch this morning: Wal-Mart Stores Inc(NYSE: WMT)


Its share price has decline -2.13% in three months and is up 1.98% for the last five trades.

Wal-Mart Stores Inc. (NYSE:WMT) reported its previous quarter on 11/17/2016 where it reported the Actual Earnings of $0.98. The 1 year EPS growth rate is -7.90%.

Sears (SHLD), Kohl's (KSS) and JCPenney (JCP) are other retailers that have fallen on hard times lately. Analysts project first-quarter earnings of $0.96 per share.

The retailer does not break out its actual Canadian sales, although they are estimated to be more than $25-billion. Our global business is consistently delivering solid sales growth in constant currency, and Sam's Club posted its best comp sales growth of the year. In addition, the company reported 3.0 percent year-over-year revenue growth, up to $133.6 billion.

Wal-Mart drew more shoppers to its namesake stores in the United States and its e-commerce sales soared, signs that its efforts to lower prices and improve web services are helping it compete better against online leader Amazon.

In case of Revenue Estimates, 23 analysts have provided their consensus Average Revenue Estimates for Wal-Mart Stores 131.22 Billion. Therefore, the stated figure displays a quarterly performance of 6.52% and year to date performance of 5.38%.

The Board of Directors of Wal-Mart Stores approved an annual cash dividend for fiscal year 2018 of $2.04 per share, an increase of 2 percent from the $2.00 per share paid for the last fiscal year. The TTM operating margin is 4.8 percent. US comparable store sales growth of 1.8% is above our 1.4% estimate, despite a 0.9% negative impact from food deflation.

One of the big positives of the quarter was the improvement in e-commerce sales.

Wal-Mart indicated that its net sales at global division witnessed a fall of 5.1 percent to $31.0 billion. (PLKI - Free Report) to acquire the fried chicken chain for $1.8 billion.

And in a sign that Wal-Mart is tightening its inventory levels in general merchandise categories, its USA existing-store merchandise levels fell 7.2 per cent from a year earlier. Both comp traffic and ticket increased 1.2%.

I fear, however, that the outperformance in e-commerce may have more headline value than fundamental business impact, at least for now. Analysts have a mean recommendation of 2.00 on this stock (A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range). Currency dampened sales by approximately $11.05 billion.

For the 13-week period ending April 28, 2017, the company expects Walmart U.S comparable sale to increase between 1.0 percent and 1.5 percent.

The world's largest retailer announced adjusted earnings of $1.30 per share, edging out the $1.29 that was expected.

A planned delay in the delivery of two tax refunds could be taking a bite out of Wal-Mart's revenue. The Closing price of Wal-Mart Stores Inc.

  • Terrell Bush