Wal-Mart Beats on Both Top and Bottom Lines
Wal-Mart (NYS: WMT) reported earnings on Thursday. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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.
Can your retirement portfolio provide you with enough income to last? You'll need more than Wal-Mart. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
Add Wal-Mart to My Watchlist.
At the time thisarticle 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. 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.
