Wal-Mart Stores (NYSE:WMT)
Wal-Mart Earnings & Technicals
On Thursday morning before the market opened, Wal-Mart (WMT) announced first quarter earnings that topped analyst estimates and sent shares soaring in the premarket session. The company announced earnings per share of 98 cents on $115.9 billion in sales while analysts were looking for 88 cents per share on 113.2 billion in sales. This is also compared to the same period ending last year where they posted earnings of $1.03 on $114.8 billion in revenues. The company also stated that same-store sales grew 1% topping analyst estimates of 0.5%. This was a great earnings beat and their guidance for the second quarter were in line with analyst estimates with EPS ranging between 95 cents and $1.08 while analyst were looking for 98 cents. Currently analysts have an average price target of $65.22.
Looking at the chart you will see that shares are surging in the premarket with highs coming in at $69.19 after closing Wednesday at $63.15, a 9.6% jump in price. Shares are looking to open at an important pivot point at $69 followed by $70 but we should see some support come in at $68. This gap up with put shares well above their 200-day moving average currently sitting at $64.55. Look for this to be an active trader today with above average volume and volatility.
CEO Comments
“We are pleased to see the U.S. comp result, strong performance outside the Us.S., membership trends in Sam’s Club and EPS results versus guidance. In addition, we are focused on building the e-commerce capabilities we need to drive growth to a higher level and deliver the seamless shopping experience for customers they desire. Another highlight is the improved inventory position that contributed to strong cash flow performance. We’re off to a good start for the year.”
CFO Comments
“We are proud of teh overall results in the first quarter, and there is momentum in many parts of the business. Based on our views of the global operating environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2017 earnings per share to range between $0.95 and $1.08,” said Brett Biggs, Wal-Mart Stores, Inc. executive vice president and CFO. “Additionally, we expect comp sales for Walmart U.S. to be about 1%, and Sam’s Club, without fuel, to be slightly positive for the 13-week period ending July 29, 2016,” added Biggs.
WMT Profile
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. The company operates its business through three reportable segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes the company’s mass merchant concept in the U.S., operating under the Walmart or Wal-Mart brand, as well as walmart.com. and also offers financial services and related products, including money orders, prepaid cards, wire transfers, check cashing and bill payment. The Walmart International segment includes numerous formats of retail stores, restaurants, wholesale clubs, including Sam’s Clubs, and various retail websites that operate outside the U.S.
This segment operates units in three major categories: retail, wholesale and other which consists of numerous formats, including discount stores, supermarkets, supercenters, hypermarkets, retail websites, warehouse clubs, restaurants and apparel stores. The Sam’s Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com. and also offers brand name merchandise, which include hard goods, some soft goods and selected private-label items and brands in five merchandise categories namely grocery and consumables, fuel and other categories, technology, office and entertainment, home and apparel and health and wellness. Wal-Mart Stores was founded by Samuel Moore Walton and James Lawrence Walton on July 2, 1962 and is headquartered in Bentonville, AR.