Wal-Mart beats by $0.05, reports revs in-line; guides Q3 EPS in-line; raises FY17 EPS, in-line
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- Reports Q2 (Jul) earnings of $1.07 per share, $0.05 better than the Capital IQ Consensus of $1.02; revenues rose 0.1% year/year to $119.41 bln vs the $119.33 bln Capital IQ Consensus.
- Walmart U.S. delivered positive comp sales for the eighth consecutive quarter, up 1.6% vs. +1% guidance, driven by the seventh consecutive quarter of positive traffic, up 1.2%. Sams comps ex fuel +0.6% vs. slightly positive guidance.
- Neighborhood Market comp sales increased ~6.5%. Globally, on a constant currency basis, e-commerce sales and GMV increased 11.8% and 13.0%, respectively, representing an acceleration from the first quarter.
- Consolidated operating income increased 1.6%, including a gain of $535 million from the sale of Yihaodian. Excluding this gain, consolidated operating income declined 7.2%. As expected, investments in people and technology, as well as currency exchange rate fluctuations negatively impacted results.
- Co issues in-line guidance for Q3, sees EPS of $0.90-1.00 vs. $0.93 Capital IQ Consensus Estimate. Comps: Walmart U.S.: 1.0% to 1.5%; Sam's Club (ex. fuel): Slightly positive
- Co issues in-line guidance for FY17, raises EPS to $4.15-4.35 from $4.00-4.30, excluding non-recurring items but including $0.05 dilution from jet.com acquisition in Q4, vs. $4.26 Capital IQ Consensus Estimate.