Wal-mart (WMT) Posts Q1 EPS of $1.14; U.S. Comps Down 1.4%; Guides Q2 EPS

May 16, 2013 7:03 AM
(Updated - May 16, 2013 7:15 AM EDT)

Wal-mart Stores (NYSE: WMT) reported Q1 EPS of $1.14, $0.01 worse than the analyst estimate of $1.15. Revenue for the quarter came in at $113.4 billion versus the consensus estimate of $116.48 billion.

U.S. Wal-mart comps fell 1.4 percent, which the company attributed to a delay in income tax refund checks, challenging weather conditions, less grocery inflation than expected and the payroll tax increase. Comp sales, without fuel, at Sam's Club were up 0.2 percent during the period, pressured by softer business member traffic, weather and lower than expected inflation.

International sales improved 2.9 percent to $33 billion.

"In a quarter marked by considerable headwinds to top line sales, Walmart delivered solid EPS growth of 4.6 percent," said Mike Duke, CEO of Wal-Mart Stores. "I'm confident about our long-term strategy and the direction Walmart is headed...There is no doubt that our company is making the right investments in e-commerce to differentiate ourselves and become a better Walmart...And with our sales growth in the first quarter, we believe our investments are paying off."

Wal-mart sees Q214 EPS of $1.22 to $1.27, versus the consensus of $1.29. Walmart U.S. and Sam's Club, excluding fuel, expect to increase comps for the Q2 13-week period to between flat and 2 percent and 1 and 3 percent, respectively. CFO Charles Holley commented, "Investments in Global eCommerce initiatives were forecast to have an incremental $0.09 impact for fiscal 2014, and this remains in our guidance. We expect the Q2 impact to be in line with the $0.02 per share we had in the first quarter. In addition to eCommerce initiatives, expenses related to FCPA matters are expected to range from $65 to $70 million for the second quarter."

For earnings history and earnings-related data on Wal-Mart Stores (WMT) click here.

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