Wal-Mart Stores Earnings Preview: Can This Streak Continue?

Wal-Mart Stores (NYSE:WMT) will report earnings before markets open on Thursday, May 16th. Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company’s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart’s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally.

Here is your Cheat Sheet to Wal-mart Stores Earnings:

Earnings Expectations: Analysts expect earnings of $1.15 per share on revenues of $116.42 billion. Currently, the company’s P/E ratio stands at 15.62.

Analyst Trends:

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 is a profit of $5.35, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Wal-mart Stores has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 404,370 408,080 421,850 446,950 469,160
Diluted EPS ($) 3.39 3.71 4.47 4.52 5.02

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 123,170 113,020 114,300 113,930 127,920
Diluted EPS ($) 1.503 1.09 1.18 1.08 1.670

Past Performance:
Wal-mart Stores has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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