Earnings Preview: Wal-Mart

Wal-Mart (WMT) is expected to report Q3 earnings before market open Thursday, November 13, with a pre-recorded conference call scheduled for 7:30 am ET.

Guidance

Analysts are looking for a profit of 76c on revenue of $98.42B. The consensus range is 74c to 79c for EPS, and revenue of $96.59B to $100.34B, according to First Call. Wal-Mart reported better than expected Q2 results on August 14, and gave Q3 and FY08 guidance at that time. The company gave Q3 EPS guidance of 73c to 76c vs. a consensus at the time of 76c, and FY08 EPS guidance of $3.43 to $3.50 vs. a consensus at the time of $3.49. On October 28, Wal-Mart's CFO said it would "step back" on buybacks and "let things settle down a little bit", so investors will be looking for further comment on the company's buyback status on the earnings conference call.

Analyst Views

Recent analyst comments have been positive, with FTN Midwest upgrading Wal-Mart to Buy from Neutral on October 31, citing Wal-Mart gaining a larger percentage of household spending as consumer credit availability declines, and JP Morgan upgrading Wal-Mart to Overweight from Neutral on November 3, citing valuation. Wal-Mart's stock is trading down over -2.6% today, ahead of its earnings release.