The 10-second takeaway
For the quarter ended April 30 (Q1), Wal-Mart beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins contracted, operating margins were steady, and net margins were steady.
Wal-Mart reported revenue of $112.27 billion. The 15 analysts polled by S&P Capital IQ expected a top line of $110.11 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $104.19 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 $1.09. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.04 per share. GAAP EPS of $1.09 for Q1 were 12% higher than the prior-year quarter's $0.97 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, 40 basis points worse than the prior-year quarter. Operating margin was 5.7%, about the same as the prior-year quarter. Net margin was 3.3%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $114.53 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $470.17 billion. The average EPS estimate is $4.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,289 members rating the stock outperform and 781 members rating it underperform. Among 1,684 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,553 give Wal-Mart a green thumbs-up, and 131 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 $63.40.
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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. 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.