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Will These Numbers from Wal-Mart Be Good Enough for You?

By Seth Jayson – Updated Apr 10, 2017 at 1:17PM

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Checking expectations

Wal-Mart (NYSE: WMT) is expected to report Q1 earnings on May 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Wal-Mart's revenues will expand 3.4% and EPS will grow 5.5%.

The average estimate for revenue is $116.06 billion. On the bottom line, the average EPS estimate is $1.15.

Revenue details
Last quarter, Wal-Mart booked revenue of $127.10 billion. GAAP reported sales were 3.9% higher than the prior-year quarter's $123.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.67. GAAP EPS of $1.68 for Q4 were 12% higher than the prior-year quarter's $1.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 24.9%, 10 basis points better than the prior-year quarter. Operating margin was 6.7%, 10 basis points worse than the prior-year quarter. Net margin was 4.4%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $489.66 billion. The average EPS estimate is $5.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,281 members out of 7,059 rating the stock outperform, and 778 members rating it underperform. Among 1,717 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,601 give Wal-Mart a green thumbs-up, and 116 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 $76.72.

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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 position in any of the stocks mentioned. 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.

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Stocks Mentioned

Walmart Stock Quote
Walmart
WMT
$132.25 (-0.65%) $0.86

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