Earnings Reports

Google Ad

Retail giant Wal-Mart on Thursday reported better than expected second-quarter earnings and guided higher for Q3. U.S. same-store sales rose 4.5%, the strongest in 10 years, e-commerce sales jumped 40% as it continued to inch into $AMZN's space. $WMT stock was up over 10% premarket.

Walmart Family Guy

Walmart has been acquiring e-commerce firms in it's battle with Amazon. $WMT has added Jet.com, Shoebuy, Moosejaw, ModCloth and Bonobos. Target as also been growing it's e-commerce segment and reports next week.

Walmart Inc NYSE: WMT: Beat Earnings Before Open Thursday

 $1.29 Beat $0.32 EPS and $128 billion Beat $1.61 billion forecast in revenue 

Earnings

Walmart Inc. reported a loss in the second quarter due to loss from the sale of its majority stake in Walmart Brazil and unrealized losses on equity investment in JD.com  $JD. However both the top and bottom line beat analysts’ expectations. Walmart beat expectations of an EPS of $1.21 and revenue is of $125.643 billion handily.

Net loss attributable to the company for the quarter was $861 million or $0.29 per share compared to a profit of $2.9 billion or $0.96 per share a year ago. Adjusted earnings rose by 34% to $1.29 per share. Revenues increased by 3.8% to $128 billion. Excluding currency, total revenue rose by 3.6% to $127.8 billion.

Walmart Inc NYSE: WMT

Market Reaction - Pre-market 99.66 +9.44 (+10.46%)

Highlights

  • The mainy contributor to the top line growth was a 5.2% increase in sales at Walmart US to $82.8 billion.
  • Walmart International sales rose by 4%,
  • Sam’s Club sales fell 0.6% decline. Tobacco sales negatively impacted comparable sales of Sam’s Club by about 150 basis points.
  • Comparable store sales growth at Walmart US and Sam’s club were 4.5% and 5% respectively in the second quarter. E-commerce sales revved up 40%. Q1 e-commerce sales grew 33%, bouncing back after Q4 growth slowed sharply to 23% from 50% in Q3.
  • Walmart US comps growth was led by the performance of grocery, apparel and seasonal.
  • Strong comp sales were supported by traffic and ticket growth as each exceeded 2%.
  • Walmart US omnichannel saw significant progress with an expanded online assortment, including 1,100 popular new brands.
  • Grocery pickup is now in more than 1,800 locations
  • Walmart on track to reach about 40% of the US population by year-end with grocery delivery.

 


WMT Earnings Q2 18

Brazil

Advent International invested a majority stake in Walmart Brazil earlier this month whereby WMT recognized cumulative foreign currency translation losses which are are weighing on the second quarter results. The transaction closed on August 1 and gives Advent International 80% equity stake in Walmart Brazil, with Walmart retaining the rest. The investment will not have any material impact on the EPS in the current fiscal year.

Guidance

  • For fiscal year 2019, the company now expects net sales growth of about 2% in constant currency compared to the prior outlook growth of 1.5% to 2%.
  • Adjusted EPS outlook lifted to a range of $4.90 to $5.05 from the previous guidance of $4.75 to $5.00.
  • GAAP EPS is now predicted to be $2.90 to $3.05 for the full year.
  • Walmart now forecasts comparable store sales growth of around 3% in Walmart US and around 3% in Sam’s Club compared to the earlier estimate of up at least 2% in Walmart US and down 1% to flat range in Sam’s Club.
  • Walmart US e-commerce net sales are still anticipated to be about 40%.

Source: WalMart, AlphaStreet

Live From The Pit 

Log in to comment
Discuss this article in the forums (1 replies).