Wal-Mart Stores Earnings: Another Quarter of Profitability, Stock Rebounds Big

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Wal-Mart Stores Inc. (NYSE:WMT) reported its results for the first 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for Wal-Mart Stores Inc. rose to $3.74 billion ($1.09 per share) vs. $3.4 billion (97 cents per share) in the same quarter a year earlier. This marks a rise of 10.1% from the year-earlier quarter.

Revenue: Rose 8.6% to $112.27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wal-Mart Stores Inc. beat the mean analyst estimate of $1.04 per share. Analysts were expecting revenue of $110.5 billion.

Quoting Management: “Our strategy is clear. Our merchants are focused on increasing sales through the right assortment at the right time and for the lowest price,” said Bill Simon, Walmart U.S. president and chief executive officer. “We will continue to invest in price to lower costs for our customers by enhancing leverage initiatives and managing expenses.”

Key Stats:

The profit increase last quarter ends a two-quarter streak of year-over-year profit decreases. Net income fell 14.7% in the fourth quarter of the last fiscal year and in the third quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of $1.44 versus a mean estimate of net income of $1.45 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.18 a share to $1.16 over the last ninety days. At $4.85 per share, the average estimate for the fiscal year has fallen from $4.90 ninety days ago.

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.

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

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