Wal-Mart beats by $0.03, reports revs in-line; guides Q4 EPS in-line; Q3 US comps +0.5%; sees US Q4 comps flat to 1%
Reports Q3 (Oct) earnings of $1.15 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.12; revenues (excluding membership and other revneue) rose 2.8% year/year to $118.08 bln vs the $117.41 bln consensus.
- Co issues in-line guidance for Q4, sees EPS of $1.49-1.59 vs. $1.57 Capital IQ Consensus Estimate (excluding an estimated negative impact of approximately $0.03 per share related to the future closure of underperforming stores).
- Comps: WMT reports U.S. Q3 comparable store sales +0.5% vs relatively flat prior guidance (-0.3% Q3 last year).
- Comp sales for the Neighborhood Market format increased ~ 5.5%.
- WMT reports Sam's Club Q3 comparable store sales of +0.4% vs slightly positive guidance (excluding fuel).
- E-commerce sales globally increased ~ 21% on a constant currency basis.
- Comps Guidance: WMT sees U.S. Q4 comparable store sales flat to 1% and Sam's Club comparable store sales flat to 2%.
- Traffic: During the 13-week period, Walmart U.S. comp traffic decreased 0.7 percent, while average ticket increased 1.2 percent. Excluding fuel,1 Sam's Club comp traffic was up 0.2 percent, and average ticket increased 0.2 percent.
- "We anticipate our full year effective tax rate will range between 32 and 34 percent."