MKM Partners Releases Pre-earnings coverage on Wal-Mart

In a report released Monday, MKM Partners analyst Patrick McKeever released an earnings preview for for Wal-Mart Stores, Inc.

second quarter 2014. Analyst at MKM predict Wal-Mart Q2 results to come in line with expectations based on the same thesis of laging traffic, investment allocation in its e-commerce segment, and higher healthcare costs. The MKM note stated guidance of relatively flat same store sales for Wal-Mart and Sams, making minimal improvement from its Q1 2014 comps of 0.01 percent. McKeever predicts a 20 basis point decrease in consolidated operating margin due to slightly higher commodity costs, and e-commerce and healthcare expenses.