Wal-Mart Stores Earnings: Here’s Why Investors are Selling Shares Now

Wal-Mart Stores Inc. (NYSE:WMT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.39%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Wal-Mart Stores Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.59% to $1.14 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Rose 1.03% to $114.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wal-Mart Stores Inc. reported adjusted EPS income of $1.14 per share. By that measure, the company missed the mean analyst estimate of $1.15. It missed the average revenue estimate of $116.42 billion.

Quoting Management: “In a quarter marked by considerable headwinds to top line sales, Walmart delivered solid EPS growth of 4.6 percent,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Walmart’s mission is simple and focused — to help people save money so they can live better. When we simplify and focus our execution against this mission, it’s easy for our associates to prioritize what they have to do to serve our customers.”

Key Stats (on next page)…

Revenue decreased 10.73% from $127.92 billion in the previous quarter. EPS decreased 31.74% from $1.67 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.29 and has not changed. For the current year, the average estimate has moved down from a profit of $5.38 to a profit of $5.35 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)