It is being rumored this morning, in literary and well learned circles, that the U.S. economy might grow at the feverish clip of 2.25% in 2016. I’ll pause, as you digest this news.
Ok, I’m back.
Along those lines, it shouldn’t come as a surprise to any of you out there to learn that Walmart demolished earnings estimates this morning and are now going about the process of destroying all remnants of bearish sentiments around WMT.
Shares are spiking higher by 8.5% on this momentous occasion.
Reports Q1 (Apr) earnings of $0.98 per share, $0.10 better than the Capital IQ Consensus of $0.88; revenues rose 0.9% year/year to $114.99 bln vs the $112.68 bln Capital IQ Consensus.
U.S. comps +1% vs +0.5% guidance (+1.1% Q1 last year). Sam’s Club comps +0.1% vs flat guidance (excluding fuel).
Walmart U.S. delivered positive comp sales for the seventh consecutive quarter, up 1.0%, driven by the sixth consecutive quarter of positive traffic, up 1.5%. Neighborhood Market comp sales increased ~7.1%. Customer experience scores continued to improve.Operating cash flow was $6.2 billion and free cash flow was $4.0 billion, both higher than last year due to solid operating performance and improved working capital management.
Consolidated operating income declined 7.1%, as planned investments in people and technology, as well as currency exchange rate fluctuations impacted results. Excluding currency, operating income decreased by 4.6%.
Co issues upside guidance for Q2, sees EPS of $0.95-1.08 vs. $0.98 Capital IQ Consensus; sees Wal-Mart U.S. Q2 comparable store sales up ~1%; Sam’s Club comparable store sales slightly positive ex fuel.
I’d like to point out that Target’s earnings miss is all the more meaningful this morning, from a managerial standpoint. It’s obvious that the economy is ‘pistol hot.’ Some say it might grow at 2.25%. The fact that Walmart crushed and Target missed is further proof that citizens of American prefer the brand of retail dystopia that Walmart is selling. Ergo, the shares are being graciously rewarded this morning.
If you enjoy the content at iBankCoin, please follow us on Twitter
Haven’t been to a Walmart in years except for the occasional “it’s 1am and I forgot I need this” items. Central Market for groceries, Target for necessities. Would get groceries at Whole Foods if I lived near one
TGT = over 1MM sigs on a boycott petition. ?
I’m just sayin…
Had to look this up. The transgender restroom issue…
The Walmart economy. We’re all fooked.
Of course they killed TGT. WMT sells hammers and light bulbs for a nickel less.
America doubles down on the dumb down.
Wait’ll the presumptive Republican nominee gets in. He’ll block all those cheap Chinese imports filling the shelves at Walmart. That’ll be fun.
You think this is somethin’? Wait ’til the big merger happens, and we will have a single retailer called Walmazon.
There is a new food store in my little hillbilly town called “Ruler Foods”…turns out to be owned by Kroger. It is almost entirely “Kroger Brand” and other crap. Sign of the times.