On May 16, Wal-Mart (NYSE:WMT) released Q1 2007 earnings for the period ended April 30, 2006.
- The company recorded 12.3% sales growth, driven by same-store-sales growth of 3.8%, new stores, and international acquisitions.
- Net margins declined and lagged improvements in gross and operating margins, largely on increased interest expense from higher long-term debt balances.
- There was a strong increase in operating cash flow and free cash flow.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$80,430 |
$80,468 |
$71,680 |
12.3%* |
|
Net Profit |
-- |
$2,615 |
$2,461 |
6.3% |
|
EPS |
$0.61 |
$0.63 |
$0.58 |
8.4% |
|
Diluted Shares |
4,170,000 |
4,234,000 |
(1.5%) |
Get back to basics with a look at the income statement.
Margin Checkup*
|
Q1 2006 |
Q1 2005 |
Change** | |
|---|---|---|---|
|
Gross Margin |
23.57% |
23.04% |
0.53 |
|
Operating Margin |
5.59% |
5.56% |
0.03 |
|
Net Margin |
3.28% |
3.47% |
(0.19) |
**Expressed in percentage points.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$5,858 |
$4,955 |
18.2% |
|
Accounts Rec. |
$2,507 |
$1,520 |
64.9% |
|
Inventory |
$32,206 |
$31,349 |
2.7% |
|
Liabilities |
Q1 2006 |
Q1 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$25,383 |
$22,910 |
10.8% |
|
Long-Term Debt |
$25,036 |
$18,232 |
37.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$3,740 |
$2,513 |
48.8% |
|
Capital Expenditures |
$3,220 |
$2,772 |
16.2% |
|
Free Cash Flow |
$520 |
($259) |
N/A |
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Related Companies:
- Target (NYSE:TGT)
- Sears Holdings (NASDAQ:SHLD)
- Costco (NASDAQ:COST)
- BJ's Wholesale Club (NYSE:BJ)
- Dollar General (NYSE:DG)
Wal-Mart is an Inside Value selection. Costco is a Stock Advisor recommendation. Check out our entire suite of newsletters by clicking here.
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At the time of publication, Nathan Parmelee had positions in Costco. Fool rules are here.
