Michael Lasser Impressed By Wal-Mart's Q1 Beat, But Isn't Ready To Buy The Stock

Wal-Mart Stores, Inc. WMT impressed investors and traders with its better-than-expected first quarter results. But did the company also impress some of Wall Street's top retailing analysts?

Speaking as a guest on CNBC, UBS' Michael Lasser said he was looking for Wal-Mart to report a 0.5 percent comp gain. However, the company reported a 1 percent gain which was impressive considering the "broader retail environment" and "some of the questions about the consumer."

"Wal-Mart did a pretty good job in the quarter," the analyst continued. "I think that speaks to the consistency of the business... to the consumable nature of the business and the geographic distribution."

Related Link: Wal-Mart's 10% Spike Is Rare, But Not Unprecedented In The Past Decade

However, Lasser questioned if Wal-Mart can sustain margins over the longer-term.

When asked what would it take for Lasser to upgrade Wal-Mart's stock rating from Neutral to Buy, the analyst suggested that there is a "mis-match" between the company's U.S. sales which rose 4 percent while operating income fell 8 percent.

"What we need to see is that they can grow sales and earnings over time," he said. "Right now, they are investing in the business - in labor and prices to drive the long-term."

He concluded it might take several quarters before "we see any evidence" that Wal-Mart's initiatives are "working."

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Posted In: Analyst ColorCNBCEarningsNewsMediaMichael LasserRetailer EarningsretailersSquawk on the StreetUBSWal-Mart
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