Wal-Mart beats by $0.07, reports revs in-line; guides Q1 EPS below consensus; guides FY16 EPS below consensus, lowers rev guidance
Reports Q4 (Jan) adj. earnings of $1.61 per share, $0.07 better than the Capital IQ Consensus of $1.54; total sales rose 1.4% year/year to $130.65 bln vs the $131.83 bln consensus.
Co issues downside guidance for FY16, sees EPS of $4.70-5.05 vs. $5.20 Capital IQ Consensus; lowers FY16 revs to +1-2% (from +2-4%) to ~$487-492 bln vs. $495.48 bln Capital IQ Consensus.
- U.S. Q4 comparable store sales +1.5% vs 0-1% guidance (-0.4% Q4 last year); WMT reports Sam's Club Q4 comparable store sales of +2% vs 0-2% guidance (excluding fuel); Neighborhood Market format comps +7.7%.
Co issues downside guidance for FY16, sees EPS of $4.70-5.05 vs. $5.20 Capital IQ Consensus; lowers FY16 revs to +1-2% (from +2-4%) to ~$487-492 bln vs. $495.48 bln Capital IQ Consensus.
- If currency exchange rates remain where they are today, this would cause a negative impact to fiscal year 2016 net sales of ~$10 billion, as well as a negative impact on operating income of around $0.10 per share.
- "Given the investments we're making in our worldwide e-commerce initiatives and in our associates through higher wages and training, we expect operating income to be pressured in fiscal 2016. We will invest ~$0.02 per share in the first quarter and ~ $0.20 per share for the full year in the new wage structure, comprehensive associate training and educational programs. Our incremental investment in global e-commerce initiatives will range between $0.06 and $0.09 per share this year.