Walmart Q2 Results Fall Just Short Of Its Most Bullish Expectations


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Wal-Mart Stores Inc (NYSE:WMT) reported top- and bottom-line beats in its

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

earnings report Thursday morning while U.S. comps grew for the twelfth consecutive quarter. Yet the stock lost around 2 percent — a move many investors don't fully understand.Oppenheimer's Rupesh Parikh explained why Walmart's stock dipped 2 percent early Thursday morning in a research report. Simply put, the company's report was just in line with management's own guidance but short of the "more bullish market expectations."


Want Private Access to Benzinga Analyst?

Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.


Specifically, a 1.8 percent U.S. comps growth at the core-Walmart store rose 1.8 percent, in line with management guidance of 1.5–2 percent. Also, Walmart's earnings per share came in just 1 cent better than expected at $1.08.

There were several encouraging aspects of the earnings report beyond the headline numbers, Parikh continued. For instance, U.S. grocery was a "bright spot" as the food category saw its strongest quarterly comp performance in five years. Also, total two-year US comp trends improved by 0.9 percentage points to 3.1 percent from the prior quarter.

Perhaps more important to many investors, online sales remained strong and may signal that eCommerce is "beginning to click" for Walmart.

But at the end of the day, Walmart's earnings were positive, just not good enough to help the stock — a trend clearly playing out within the retail sector.

Parikh maintains an Outperform rating on Walmart's stock with an unchanged $90 price target.

Related Links:10 Stocks To Watch For August 17, 2017All The Sell-Side Ratings And Price Targets On Walmart Ahead Of Q2 Earnings

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorEarningsLong IdeasNewsGuidanceReiterationAnalyst RatingsTrading IdeasGroceryretail earningsretailersRupesh ParikhWalmartWalmart Ecommerce