Wal-Mart Stores, Inc. (NYSE: WMT)
Wal-Mart is having an incredible day in the market today, and for good reason. The company recently reported earnings, beating expectations and setting the bar pretty high for the coming quarter. Today, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from WMT moving forward. So, let’s get right to it…
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WMT Reports Solid Earnings
As mentioned above, Wal-Mart reported its earnings for the first quarter early this morning. While the report was expected, what wasn’t expected was how well the company did. Here’s what we saw from the report:
- Earnings – When it comes to earnings, WMT did incredibly well. During the first quarter, analysts were expecting that the company would report earnings in the amount of $0.88 per share. However, the actual number that was reported came in at $0.98 per share, beating expectations by more than 10%!
- Revenue – In terms of revenue, WMT did incredibly well. During the first quarter, it was expected that the company would generate top-line revenue in the amount of $113.22 billion. However, the company came in well ahead of this figure as well, reporting revenue for the quarter at $115.9 billion.
- Q2 Guidance – As if reporting solid revenue and solid earnings wasn’t enough to excite investors, Wal-Mart also reported that it is expecting to have a great second quarter. During the second quarter, analysts are expecting that the company will generate earnings per share in the amount of $0.98. However, WMT released guidance showing that they expect Q2 earnings to come in between $0.95 and $1.08 per share – well ahead of analyst expectations.
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company as a result. Adversely, when negative news is released, we can expect to see declines. In this particular case, WMT didn’t just surprise investors with regard to earnings, it produced positive results with regard to revenue and set expectations for a killer second quarter. As a result, investor excitement is sending the stock higher today. Currently (9:55), Wal-Mart stock is trading at $68.80 per share after a gain of $5.65 per share, or 8.95%, thus far today.
What We Can Expect To See Moving Forward
I have an overwhelmingly bullish opinion of what we can expect to see from WMT moving forward. While the company did run into issues with regard to the way it was treating its employees, it has made several changes to become an employee-friendly employer. These changes have obviously increased morale and overall productivity as the company clocks a strong quarter and expects to do so in the quarter following. All in all, things seem to be looking great for WMT at the moment.
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What Do You Think?
Where do you think WMT is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Flickr]