Wal-Mart beats by $0.01, reports revs in-line; guides Q4 EPS in-line with midpoint above; reaffirms FY16 revs guidance
- Reports Q3 (Oct) earnings of $0.99 per share, ex-$0.04 lease benefit, $0.01 better than the Capital IQ Consensus of $0.98; net sales fell 1.3% year/year to $116.6 bln vs the $117.37 bln Capital IQ Consensus.
- US Walmart Q3 comparable store sales +1.5% vs 1-2% guidance (+0.5% Q3 last year), positive for the fifth consecutive quarter; traffic increased 1.7%; Sam's Club Q3 comparable store sales of +0.4% vs 0-2% guidance (excluding fuel).
- E-commerce sales and GMV globally increased ~10% on a constant currency basis. Growth was pressured by challenges in key international markets.
- Investments in people and technology continued. Consolidated operating income declined 8.8%.
- Co issues in-line guidance for Q4, sees EPS of $1.40-1.55 vs. $1.42 Capital IQ Consensus; sees Walmart US comps +1%, Sam's Club comp ex-fuel +0-1%.
- Co issues guidance for FY16, narrows EPS to $4.50-4.65 from $4.40-4.70 vs. $4.51 Capital IQ Consensus; reaffirms FY16 revs flat at ~$482.2 bln vs. $481.98 bln Capital IQ Consensus Estimate. Note co warned at Investor Day last month.