The 10-second takeaway
For the quarter ended April 30 (Q1), Wal-Mart missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share expanded.
Gross margins expanded, operating margins were steady, net margins were steady.
Wal-Mart logged revenue of $113.43 billion. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $115.78 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.14. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.15 per share. GAAP EPS of $1.14 for Q1 were 4.6% 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 24.7%, 10 basis points better than the prior-year quarter. Operating margin was 5.7%, much about the same as the prior-year quarter. Net margin was 3.3%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $119.09 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $489.08 billion. The average EPS estimate is $5.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,280 members out of 7,058 rating the stock outperform, and 778 members rating it underperform. Among 1,693 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,577 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 $78.16.
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