Wal-Mart Lifts Forecast as Brick-and-Mortar Recovery Continues

Retail giant Wal-Mart Stores, Inc. (NYSE:WMT) has now seen eight consecutive quarters of same-store sales growth, which propeled earnings higher and prompted a raised full-year outlook.

The Bentonville, AR-based company this morning reported second quarter earnings of $1.07 per share, easily beating out Wall Street estimates fo $1.02. Revenue was mostly flat from last year to $119.41 billion, edging out analysts’ view of $119.33.

Looking ahead, WMT forecast Q3 EPS to range from $0.90 to $1.00, which straddles analyst expectations of $0.93.

For the full year 2017, Wal-Mart lifted its EPS outlook to a range of $4.15 to $4.35, up from a prior view of $4.00 to $4.30. Analysts are currently looking for $4.26 per share for the year.

Other notes from the report included:

  • Walmart U.S. saw its 8th eighth consecutive quarter of comparable sales growth, up 1.6% in Q2.
  • Sam’s Club comps rose 0.6% in Q2.
  • Neighborhood Market Q2 comps rose 6.5%.
  • Global e-commerce sales and GMV increased 11.8% and 13.0%, respectively, on a constant currency basis.
  • Consolidated operating income rose 1.6%, but fell 7.2% when excluding a one-time gain from the sale of Yihaodian.

From the press release:

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,539 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482.1 billion, Walmart employs approximately 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

Wal-Mart shares rose $2.27 (+3.11%) to $75.20 in premarket trading. Prior to today’s report, WMT stock had risen 19% year-to-date, more than doubling the performance of the S&P 500 in the same period.

WMT-2016-08-18

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