Wal-Mart Misses Where it Counts
Wal-Mart (NYS: WMT) reported earnings on Feb. 21. Here are the numbers you need to know.
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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Wal-Mart. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Wal-Mart to My Watchlist.
At the time this article was published 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 ofMotley 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.