Yahoo Finance Walmart’s Fiscal 1Q17: Sales and Earnings Surpass Expectations
Walmart's Fiscal 1Q17: Did Earnings Surpass Expectations?
Walmart reports an upbeat fiscal 1Q17
Walmart (WMT), the world’s largest brick-and-mortar retailer, reported its earnings for fiscal 1Q17 before the market opened on May 19, 2016. The quarter ended on April 30, 2016.
Walmart’s first-quarter results were upbeat, in sharp contrast to Target’s (TGT) results, which were released one day earlier. Walmart’s stock price rose 9.6% on May 19 on the company’s better-than-expected performance.
Results beat expectations
Walmart surpassed Wall Street analysts’ consensus estimates in the first quarter. It also surpassed the guidance that it had provided at the end of its fiscal 4Q16 earnings call in February 2016.
Walmart generated sales of $115.9 billion in fiscal 1Q17, a rise of 0.9% year-over-year. This sales number was well ahead of analysts’ consensus estimate of $113.2 billion.
Walmart reported adjusted EPS (earnings per share) of $0.98 in fiscal 1Q17, beating analysts’ consensus estimate of $0.88 by 11.4%. This was the third straight quarter of earnings beats by the company. However, WMT’s fiscal 1Q17 EPS fell by 4.9% compared to fiscal 1Q16.
How have WMT’s peers performed?
Target beat Wall Street analysts’ consensus estimate for EPS in fiscal 1Q17, but its revenue trailed expectations. Target reported disappointing store comps, which came in below its guidance range.
On the other hand, Walmart’s comps in its US segments came in above its guidance range. We’ll discuss Walmart’s revenue performance in greater detail in the next article.
Mass merchandiser (XRT) (XLP) Costco (COST) is slated to declare its third-quarter results on May 25, 2016. Costco missed Wall Street’s expectations for both revenue and EPS last quarter, partly due to the adverse foreign exchange impact of the higher US dollar on international sales.
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