Wal-Mart Misses Q1 Estimates, Shares Fall

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fell more than 2 percent in pre-market trading after the company reported weaker-than-expected results for its fiscal first quarter. The Bentonville, Arkansas-based company posted quarterly earnings of $3.34 billion, or $1.03 per share, compared to $3.59 billion, or $1.11 per share, in the year-ago period. Wal-Mart said currency negatively impacted earnings per share by around $0.03. Its total revenue fell 0.1 percent to $114.83 billion from $114.96 billion. However, analysts were expecting earnings of $1.04 per share on revenue of $116.30 billion. The average estimate among 38 Estimize users was for earnings of $1.06 per share and revenue of $116.62 billion. Its total U.S. same-store sales, including fuel, rose 0.2 percent in the quarter. Walmart U.S. same-store sales gained 1.1 percent in the quarter, while e-commerce sales globally surged around 17 percent. Sam's Club same-store sales, without fuel, rose 0.4 percent in the quarter, while its same-store sales, including fuel, declined 3.8 percent. Consolidated operating income shrank 8.3 percent in the first quarter. For the second quarter, the company projects earnings of $1.06 to $1.18 per share, versus analysts' estimates of $1.17 per share. The company also expects Walmart U.S. same-store sales to rise around 1 percent and Sam's Club same-store sales growth, without fuel, of flat to up 2 percent. "We had a solid first quarter. We took some important strategic steps to strengthen the foundation of our business for the future. We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere we operate...and we are," said Doug McMillon, President and CEO, Wal-Mart Stores, Inc. Walmart shares fell 2.59 percent to $77.85 in pre-market trading.