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Wal-Mart misses by $0.04, reports revs in-line; guides Q3 EPS below consensus; lowers FY16 EPS below consensus
- Reports Q2 (Jul) earnings of $1.08 per share, $0.04 worse than the Capital IQ Consensus Estimate of $1.12; revenues were unchanged from the year-ago period at $119.33 bln vs. $119.13 bln consensus.
- U.S. Q2 comps +1.5% vs ~1% guidance and flat last year; driven by traffic of 1.3%. Neighborhood Market comps increased ~ 7.3%, with strong growth from new stores. E-commerce sales globally increased ~ 16% on a constant currency basis. Gross merchandise value, or GMV, increased ~ 18% on a constant currency basis.
- Q2 earnings were pressured by currency fluctuations, lower Walmart U.S. margins and investments in customer experience. Consolidated operating income declined 10%.
- Co issues downside guidance for Q3, sees EPS of $0.93-1.05 vs. $1.08 Capital IQ Consensus Estimate.
- Sees Walmart US comps +1-2%, Sams w/o fuel +0-2%
- Co issues downside guidance for FY16, lowers EPS to $4.40-4.70 from $4.70-5.05 vs. $4.76 Capital IQ Consensus Estimate.
- The impact from investments in wages, training and additional hours in our stores and clubs will be ~ $0.24; FX: ~$0.15; eCommerce investment ~$0.06-0.09