The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Wal-Mart met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins dropped, operating margins grew, net margins expanded.
Wal-Mart recorded revenue of $113.20 billion. The 17 analysts polled by S&P Capital IQ anticipated revenue of $114.04 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $110.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.08. The 27 earnings estimates compiled by S&P Capital IQ anticipated $1.07 per share. GAAP EPS of $1.08 for Q3 were 11% higher than the prior-year quarter's $0.97 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.9%, 20 basis points worse than the prior-year quarter. Operating margin was 5.4%, 10 basis points better than the prior-year quarter. Net margin was 3.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $128.85 billion. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $469.04 billion. The average EPS estimate is $4.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,255 members out of 7,035 rating the stock outperform, and 780 members rating it underperform. Among 1,660 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,527 give Wal-Mart a green thumbs-up, and 133 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wal-Mart is outperform, with an average price target of $77.48.
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