EARNINGS: Wal-Mart Has Second Straight Quarter of Rising Net Income

Wal-Mart Stores Inc. (NYSE:WMT) reported its results for the second quarter. Wal-Mart Stores operates Walmart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States.

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Wal-Mart Stores Inc. Earnings Cheat Sheet

Results: Net income for Wal-Mart Stores Inc. rose to $4.02 billion ($1.18 per share) vs. $3.8 billion ($1.09 per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year-earlier quarter.

Revenue: Rose 4.5% to $114.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wal-Mart Stores Inc. was about in line with expectations as the mean analyst estimate of $1.17 per share. It beat the average revenue estimate of $110.5 billion.

Quoting Management: “Walmart had a strong second quarter, and I’m pleased with the earnings and overall results,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “We had positive comp sales in Walmart U.S. and Sam’s Club, as well as each of our International markets, reinforcing that customers rely on Walmart to help them save money and live better.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 8.5% to $113.02 billion in the first quarter. The figure rose 5.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.1% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of $1.09 versus a mean estimate of net income of $1.04 per share.

Net income has increased 0.8% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 10.1% from the year-earlier quarter.

Looking Forward: The average estimate for the third quarter is steady at $1.05 a share. For the fiscal year, the average estimate has moved up from $4.85 a share to $4.90 over the last ninety days.

Competitors to Watch: Target Corporation, Costco Wholesale Corp., Wal-mart de Mexico S A B de C V, Dollar General Corp., BJ’s Wholesale Club, Inc., Family Dollar Stores, Inc., Gordmans Stores, Inc., Dollar Tree, Inc., Amazon.com, Inc., and Fred’s, Inc.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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