Wal-Mart beats by $0.01, reports revs in-line; U.S. Q4 comparable store sales of -0.4%; guides Q1/FY15 EPS below consensus; sees FY15 revs at low end prior range (74.85)
Reports Q4 (Jan) earnings of $1.60 per share, $0.01 better than the Capital IQ Consensus
Estimate of $1.59; revenues rose 1.5% year/year to $129.71 bln vs the $129.52 bln consensus
- WMT reports U.S. Q4 comparable store sales of -0.4% vs guidance for slightly negative WMT reports Sam's Club Q4 comparable store sales of -0.1%; guided for slightly negative to 0-2% (excluding fuel). During the 14-week period, Walmart U.S. comp traffic decreased 1.7 percent, while average ticket increased 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.3 percent for the 14-week period. In the fourth quarter period, excluding fuel,1 Sam's Club comp traffic was up 1.2 percent, while ticket was down 1.3 percent. E-commerce sales positively impacted comp sales by approximately 0.4 percent for the 14-week period.
- Co issues downside guidance for Q1, sees EPS of 1.10-1.20 vs. $1.23 Capital IQ Consensus Estimate. WMT sees U.S. Q1 comparable store sales relatively flat and Sam's Club comparable store sales relatively flat. Co issues downside guidance for FY15, sees EPS of 5.10-5.45 vs. $5.55 Capital IQ Consensus Estimate; sees FY15 revs of low end 3-5% (~$487.2 bln) vs. $491.13 bln Capital IQ Consensus Estimate.
- "We expect economic factors to continue to weigh on our outlook... Some of the factors affecting our consumers include reductions in government benefits, higher taxes and tighter credit. Further, we have higher group health care costs in the U.S. These concerns, combined with investments in e-commerce, will make it difficult to achieve the goal we have of growing operating income at the same or faster rate than sales. In October, we forecasted a 3 to 5 percent net sales increase for fiscal 2015. Given these factors and the ongoing headwind from currency exchange, we expect to be toward the low end of the net sales guidance. "Additionally, all guidance provided today assumes currency exchange rates remain at current levels," added Holley. "If currency rates remain where they are today, net sales would be negatively impacted by approximately $3.5 billion for fiscal 2015. During the first quarter of this year, we will begin to anniversary the increased costs we incurred last year for FCPA matters, including compliance program enhancements and the ongoing investigations. We anticipate expenses for FCPA matters and compliance-related enhancements to range between $200 and $240 million for fiscal 2015." The company's pending sale of the Vips restaurant business in Mexico remains subject to regulatory approval and is now expected to be completed in the first quarter of fiscal 2015. The Vips results are recorded in discontinued operations, and the estimated future gain from the sale is expected to be approximately $0.06 per share.