On Aug. 16, Wal-Mart (NYSE:WMT) released Q2 2006 earnings for the period ending July 31.

  • Earnings of $0.67 per share beat analyst estimates but represent slowing bottom-line growth.
  • Operating margins dropped by 0.21% from the prior-year quarter.
  • Comps growth of 3.5% is behind that of competitor Target (NYSE:TGT), as discussed here.

(Figures in millions, except per-share data)

Income Statement Highlights (What's this?)

Avg. Est.

Q2 2006

Q2 2005

% Change

Sales

$77,480

$77,520

$70,459

+10.0%

Net Profit

--

$2,805

$2,651

+5.8%

EPS

$0.65

$0.67

$0.62

+8.1%



Margin Checkup (What's this?)

Q2 2006

Q2 2005

Change

Gross Margin

24.17%

24.02%

+0.14%

Op. Margin

6.04%

6.25%

-0.21%

Net Margin

3.62%

3.76%

-0.14%



Balance Sheet Highlights (What's this?)

Assets

Q2 2006

Q2 2005

% Change

Cash+ ST Invest.

$5,673

$4,709

+20.5%

Inventory

$30,918

$28,266

+9.4%

Accounts Rec.

$1,682

$1,280

+31.4%



Liabilities

Long-Term Debt

$20,209

$17,044

+18.6%

Accounts Pay.

$22,624

$19,711

+14.8%



Cash Flow Highlights (What's this?)

Q2 2006

Q2 2005

% Change

Cash From Ops

$6,541

$4,873

+34.2%

Capital Expend.

$6,473

$5,694

+13.7%

Free Cash Flow

$68

$(821)

N/A



Click here to learn more about free cash flow and why it matters.

Related Companies:

  • Target (NYSE:TGT)
  • BJ's Wholesale Club (NYSE:BJ)
  • Sears Holdings (NASDAQ:SHLD)
  • Costco (NASDAQ:COST)

Related Foolishness:

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At the time of publication, Seth Jayson had positions in no company mentioned here. Fool rules are here.