NEW YORK (TheStreet) -- Shares of Walmart (WMT) were lower in early afternoon trading Thursday, after the discount superstore reported a revenue miss for the 2017 third quarter before today's opening bell.
Walmart's quarterly revenue rose by 0.7% year-over-year to $118.2 billion, but missed expectations of $118.8 billion. Earnings came in at 98 cents per share, topping estimates for 96 cents per share.
"I think the quarter was an okay quarter," Raymond James managing director Budd Bugatch said on BloombergTV's "Bloomberg Daybreak: Americas" today. The firm has a "buy" rating and $80 price target on the stock.
Walmart is clearly still trying to improve the customer experience in its stores and to accelerate its e-commerce business, he noted. "The results tell you that strategy is intact."
For the stock to make a U-turn and go up, Walmart would have needed to report better same-store sales, Bugatch noted. Walmart's same-store sales increased by 1.2% year-over-year, vs. estimates for a 1.3% increase. "That's the disappointment this morning."
In order to know that Walmart is improving the customer experience in its stores, you have to look at the "numbers of the inventory," he said. "Inventory was actually down. Comp inventory in the U.S. was down, yet in-stock was up. And that's kind of what you look at."
Walmart agreed to purchase e-commerce giant Jet.com in August for $3.3. billion, but it's "much too early" to say whether that deal is working or not, Bugatch commented.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Walmart as a Buy with a ratings score of B. This is driven by a number of strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: WMTWMT data by YCharts