Free Research Report as Wal-Mart Beat Top- and Bottom-line Expectations

Stock Monitor: Dollar General Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 28, 2017 / Active-Investors.com has just released a free earnings report on Wal-Mart Stores, Inc. (NYSE: WMT) (“Walmart”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WMT. Wal-Mart reported its third quarter fiscal 2018 operating results on November 16, 2017. The Company’s same-store sales (comp) for its US locations climbed for the 13th consecutive quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Dollar General Corporation (NYSE: DG), which also belongs to the Services sector as the Company Wal-Mart Stores. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=DG

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Wal-Mart Stores most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=WMT

Earnings Highlights and Summary

For the thirteen-week ended October 27, 2017, Walmart’s total revenue grew 4.2% to $123.18 billion compared to $118.18 billion in Q3 FY17. Excluding currency, the Company’s total revenue was $122.7 billion, reflecting an increase of 3.8%. Walmart’s revenue numbers surpassed analysts’ expectations of $121 billion.

For Q3 FY18, Walmart’s net income totaled $1.75 billion, or $0.58 per diluted share, compared to net income of $3.03 billion, or $0.98 per diluted share, in Q3 FY17. On an adjusted basis, the Company reported EPS of $1.00 per share, ahead of Wall street’s estimates of $0.97 per share.

Walmart’s reported quarter GAAP EPS was adjusted for a charge of $0.29 for loss on extinguishment of debt in connection with the Company’s recently completed debt tender offer, a charge of $0.09 based on discussions with government agencies regarding the possible resolution of the FCPA matter, and a charge of $0.04 based on the decision to exit certain properties in one of Walmart’s international markets

Walmart’s Segment Results

During Q3 FY18, the US segment’s net sales increased 4.3% to $77.72 billion on a y-o-y basis. The segment’s comp sales grew 2.7% led by a strong comp traffic of 1.5%. Ecommerce contributed approximately 80 basis points to the segment’s comp sales growth. Hurricane-related impacts benefited comp sales by approximately 30-50 basis points.

Walmart US’s gross margin rate declined 36 basis points in Q3 FY18. The margin rate was pressured by the continued execution of the Company’s price investment strategy and the mix effects from its growing ecommerce business. This segment’s operating expenses leveraged 10 basis points, despite hurricane-related expenses. Physical stores leveraged expenses for the 3rd consecutive quarter and were partially offset by investments in ecommerce and technology.

Walmart US opened 2 supercenters and 2 neighborhood markets in Q3 FY18. The Company also remodeled 208 stores. As of the end of the reported quarter, Wal-Mart US offered online grocery in over 1,100 locations, which represents more than 200 additional locations since Q2 FY18.

For Q3 FY18, net sales at Walmart International were $29.5 billion, reflecting an increase of 4.1%. Excluding currency, the segment’s net sales totaled $29.1billion, an increase of 2.5% on a y-o-y basis. In the reported quarter, ten of eleven markets posted positive comp sales, including Walmart’s four largest markets.

The International segment’s gross margin rate declined 18 basis points, primarily driven by planned price investments in certain markets. The segment’s operating income declined 12.2% on a constant currency basis and 7.8% on a reported basis. The drop in operating income was attributed to the ~$150 million impairment related to Company’s decision to exit certain properties in one of its markets as well as lapping last year’s gain of $86 million from the sale of several shopping malls in Chile.

Cash Matters

Walmart reported net cash provided by operating activities of $17.1 billion and $19.8 billion for the nine months ended October 31, 2017 and 2016, respectively. The Company generated free cash flow of $10.2 billion and $12.3 billion for the nine months ended October 31, 2017 and 2016, respectively. The decreases in net cash provided by operating activities and free cash flow in FY18 were due to the timing of payments and an increase in incentive payments as well as lapping prior year’s improvements in working capital management.

Wal-Mart’s Return on Assets (ROA) was 5.8% and 7.3% for the trailing twelve months ended October 31, 2017 and 2016, respectively, while Return on Investment (ROI) was 14.7% and 15.0% for the trailing twelve months ended October 31, 2017 and 2016, respectively. The decline in ROA was primarily due to the loss on extinguishment of debt and the decrease in operating income. The decline in ROI was primarily due to the decrease in operating income.

Stock Performance Snapshot

December 27, 2017 – At Wednesday’s closing bell, Wal-Mart Stores’ stock marginally climbed 0.10%, ending the trading session at $99.26.

Volume traded for the day: 4.89 million shares.

Stock performance in the last month – up 2.73%; previous three-month period – up 25.19%; past twelve-month period – up 42.41%; and year-to-date – up 43.61%

After yesterday’s close, Wal-Mart Stores’ market cap was at $293.60 billion.

Price to Earnings (P/E) ratio was at 26.39.

The stock has a dividend yield of 2.06%.

The stock is part of the Services sector, categorized under the Discount, Variety Stores industry. This sector was flat at the end of the session.

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