The 10-second takeaway
For the quarter ended July 31 (Q2), 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 contracted, operating margins were steady, net margins were steady.
Wal-Mart notched revenue of $113.53 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $114.89 billion on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $109.37 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 $1.18. The 27 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. GAAP EPS of $1.18 for Q2 were 8.3% higher than the prior-year quarter's $1.09 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 25.1%, 10 basis points worse than the prior-year quarter. Operating margin was 5.9%, about the same as the prior-year quarter. Net margin was 3.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $114.42 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $472.22 billion. The average EPS estimate is $4.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,257 members out of 7,043 rating the stock outperform, and 786 members rating it underperform. Among 1,655 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,518 give Wal-Mart a green thumbs-up, and 137 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 $67.64.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.