The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Wal-Mart met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Margins dropped across the board.
Wal-Mart booked revenue of $122.29 billion. The 16 analysts polled by S&P Capital IQ predicted sales of $123.66 billion on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $116.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.44. The 27 earnings estimates compiled by S&P Capital IQ anticipated $1.46 per share on the same basis. GAAP EPS of $1.50 for Q4 were 12% lower than the prior-year quarter's $1.70 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 24.8%, 30 basis points worse than the prior-year quarter. Operating margin was 6.8%, 10 basis points worse than the prior-year quarter. Net margin was 4.2%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $109.86 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $468.10 billion. The average EPS estimate is $4.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,318 members out of 7,082 rating the stock outperform, and 765 members rating it underperform. Among 1,604 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,485 give Wal-Mart a green thumbs-up, and 119 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 $61.75.
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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 owns shares of Wal-Mart Stores. Motley Fool newsletter services have recommended buying shares of Wal-Mart Stores. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart Stores. 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.