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Wal-Mart's International Biz Slows, Transformation Still In Progress

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Wal-Mart's International Biz Slows, Transformation Still In Progress
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Wal-Mart Stores Inc (NYSE: WMT) hit a new 52-week high and a first quarter earnings beat on Thursday.

The retail giant’s core U.S. business saw 1.4-percent same-store sales growth in the quarter and traffic growth was up 1.5 percent, the best performance since fiscal year 2012.

Quarter Print, In Review

A key figure from the first quarter was Wal-Mart’s e-commerce performance, which grew a remarkable 63 percent year over year.

It appears that the company’s increased emphasis to penetrate the e-commerce world is paying off, following the $3.3 billion Jet.com acquisition Wal-Mart made last year to jumpstart e-commerce and fire back at Amazon.com, Inc. (NASDAQ: AMZN).

International business was slow, however, growing just 0.8 percent on a constant currency basis, the slowest growth since fiscal year 2010.

Analyst Commentary, Justification For Neutral Rating

“Overall, we consider this to be a decent set of results for WMT as it works on transforming its business model. The print showed WMT is making good progress. Looking ahead, a key debate will be whether it can keep up its in-store US comp growth, particularly as it grows eComm & competition in grocery intensifies,” said UBS analyst Michael Lasser following the earnings release.

UBS maintains a Neutral rating on Wal-Mart with a $73 price target.

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Wal-Mart Hits New 52-Week Highs As Q1 Impresses Investors

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Image Credit: By 020808 at the English language Wikipedia, CC BY-SA 3.0, via Wikimedia Commons

Latest Ratings for WMT

DateFirmActionFromTo
Jul 2017Goldman SachsUpgradesNeutralBuy
May 2017BMO CapitalUpgradesUnderperformMarket Perform
May 2017Gordon HaskettInitiates Coverage OnBuy

View More Analyst Ratings for WMT
View the Latest Analyst Ratings

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