What to Expect When Walmart Stores (WMT) Reports Earnings Results

NEW YORK (TheStreet) --Walmart Stores Inc. (WMT) is scheduled to release its fiscal 2016 first quarter earnings results before the market open on Tuesday morning, and analysts are expecting the retail giant to post a year-over-year decline in earnings and a slight rise in revenue for the most recent quarter.

The company has been forecast to report earnings of $1.04 per share on revenue of $116.30 billion for the quarter ended April 2015.

Shares of Walmart Stores are up by 0.27% to $79.45 in mid-morning trading on Monday.

Last year, Walmart Stores said it earned $1.10 per share on revenue of $115 billion for the fiscal 2015 first quarter.

Bentonville, AR.-based Walmart Stores Inc. operates in three segments including a mass merchant concept chain in the U.S., an international segment, and the Sam's Club segment which is a membership retail chain.

Separately, TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WAL-MART STORES INC (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • WMT's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 1.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Food & Staples Retailing industry average. The net income increased by 12.1% when compared to the same quarter one year prior, going from $4,431.00 million to $4,966.00 million.
  • Net operating cash flow has increased to $13,094.00 million or 31.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.45%.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.24 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • You can view the full analysis from the report here: WMT Ratings Report

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