Investors Greet Wal-Mart Stores Q1 Results
Wal-Mart Stores, Inc. (NYSE: WMT) delivered better-than-expected results for the first quarter. Its adjusted earnings topped the expectations by $0.10 a share and revenue was higher by more than $2 billion. Its earnings forecast for the second quarter also came in above the expectations.
The biggest retailer in the world reported adjusted earnings of $0.98 a share for the first quarter. Street estimated earnings of $0.88 a share for the same period.
Wal-Mart Stores said its total revenue was $115.9 billion while on a constant currency basis its revenue grew 4.0 percent to $119.4 billion. Street predicted the retailer to generate revenue of $103.22 billion.
The company's domestic comp sales were positive for the seventh consecutive quarter with 1.0 percent growth driven by the sixth consecutive quarter of positive traffic that was up 1.5 percent. Its Neighborhood Market comp sales also increased about 7.1 percent. The retailer pointed out that customer experience scored continued to improve.
Commenting on the results, Wal-Mart's President and CEO, Dough McMillon, said, "We are pleased to see the U.S. Comp result, strong performance outside the U.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."
Going forward, the company expects adjusted earnings to be $0.95-$1.08 a share for the second quarter. Street analysts predict the retailer to deliver earnings of $0.98 a share.
Its CEO, Brett Biggs, also commented that "We are proud of the overall results in the first quarter, and there is momentum in many parts of the business. Additionally, we expect comp sales for Walmart U.S. to be about +1.0 percent, and Sam's Club, without fuel, to be slightly positive for the 13-week period ending July 29, 2016."
In the pre-market trading on Thursday, the stock traded 8.8 percent higher.
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