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News Breaks
August 13, 2014
12:44 EDTWMTEarnings Preview: Wal-Mart sees Q2 EPS $1.15-$1.25, U.S. SSS flat
Wal-Mart Stores (WMT) is scheduled to report second quarter earnings before the market open on Thursday, August 14, with a conference call scheduled for 7:00 am ET. Wal-Mart, a member of the Dow Jones Industrial Average, operates retail stores in various formats under 69 different banners in 27 countries with its "everyday low price" philosophy. EXPECTATIONS: Analysts are looking for earnings per share of $1.21 on revenue of $119.0B, according to First Call. The consensus range for EPS is $1.17-$1.24 on revenue of $117.87B-$120.3B. LAST QUARTER: Wal-Mart reported first quarter EPS of $1.10, missing estimates of $1.15, on revenue of $115B against estimates of $116.27B. The company said severe weather in the United States negatively impacted EPS by approximately 3c. U.S. same store sales were flat in the quarter. Wal-Mart forecast Q2 EPS of $1.15-$1.25 and U.S. comp store sales "relatively flat." Guidance assumed incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. NEWS: In its Q1 report, Wal-Mart said forecast its full-year effective tax rate 32%-34%, and at the high end of this range for Q2. On its earnings conference call, the company said it expected its capital expenditures to be heavier in the back half of the fiscal year, citing its accelerated rollout of additional small format stores. The company also said costs from higher benefit enrollment and utilization by U.S. associates and healthcare cost inflation would be a headwind of over $300M for the FY. During the quarter, Wal-Mart named Greg Foran as president and CEO of Walmart U.S., effective August 9. The company, which acquired online product discovery community Luvocracy, was set to reduce prices on 10% more items in an effort to combat rivals and woo more customers during this year's back-to-school shopping season, according to the company's executive VP for U.S. general merchandise, Steve Bratspies. Wal-Mart's Asda unit reportedly cut 1,360 jobs as part of an overhaul of its store management structure. Neil Ashe, President & CEO of Walmart Global eCommerce, predicted that the company's e-commerce sales would reach $13B this year. CEO Doug McMillon told the Code Conference in June that the company plans to accelerate the pace of its acquisitions, calling out 3-D printing, wearable computers, connected-home devices and mobile purchasing as areas of interest. STREET RESEARCH: Baird, which sees the potential for improving fundamentals in the second half of the year, believes the company is taking the appropriate steps to grow the business long term. Jefferies downgraded its rating on Wal-Mart shares to Hold from Buy and cut its price target to $76 from $89. The firm said the retailer's investment spending may not be yielding positive results and sees risk to annual guidance from elevated expenses and lackluster sales. PRICE ACTION: Wal-Mart shares are down almost 6.5% over the last three months and are down 6% year-to-date. In early afternoon trading, Wal-Mart shares are down fractionally to $74.03.
News For WMT From The Last 14 Days
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July 2, 2015
08:08 EDTWMTMcCormick should be bought on weakness, says Bernstein
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June 30, 2015
07:29 EDTWMTNon-profit group: Wal-Mart made deceptive ‘Made in the USA’ claims
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June 24, 2015
06:22 EDTWMTWal-Mart to charge fees to ‘almost all’ vendors, Reuters reports
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June 23, 2015
18:04 EDTWMTWal-Mart poaches technology talent from eBay, WSJ says
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16:29 EDTWMTOn The Fly: Top stock stories for Tuesday
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13:37 EDTWMTOn The Fly: Top stock stories at midday
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07:05 EDTWMTGreen Dot price target raised to $24 from $22 at Piper Jaffray
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06:31 EDTWMTGreen Dot contract terms better than feared, says JPMorgan
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June 22, 2015
19:00 EDTWMTOn The Fly: After Hours Movers
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16:33 EDTWMTGreen Dot rallies sharply on Walmart deal
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16:28 EDTWMTGreen Dot up 27% after announcing deal with Wal-Mart
16:02 EDTWMTGreen Dot to remain program manager for Walmart
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June 19, 2015
08:22 EDTWMTChina to let foreign companies fully own e-commerce businesses, Reuters reports
China's Ministry of Industry and Information Technology announced that, effective immediately, foreign companies will be allowed to have full ownership of some e-commerce businesses, reported Reuters. Players in China's booming e-commerce market include market leader Alibaba Group (BABA) as well as JD.com (JD), Amazon.com (AMZN), Vipshop (VIPS) Wal-Mart (WMT), which holds a stake in shopping site Yihaodian, the report noted. Reference Link

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