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Wal-Mart Stores Inc. (NYSE:WMT) is scheduled to report its Q2 2013 results on August 16, 2012, before market opens. The street expects EPS and revenue of $1.17 and $115.56B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from WMT and the news from its closest competitors.

Wal-Mart Stores Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $1.09 EPS, beating analyst estimates of $1.04.

Wal-Mart Stores Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.17 based on 25 analysts' estimates, up from $1.09 a year ago. Revenue estimates are $115.56B, up from $109.37B a year ago. The median target price by analysts for the stock is $69.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On August 5, 2012, Stifel Nicolaus upgraded the company from Hold to Buy.
  • On July 2, 2012, UBS reiterated Neutral rating for the company.
  • On May 30, 2012, Barclays reiterated Overweight rating for the company.
  • On April 24, 2012, Argus downgraded the company from Buy to Hold.

Latest News

  • On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
  • On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
  • On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share (NYSEARCA:EPS) from continuing operations to range between $1.13 and $1.18. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.16 for second quarter of 2013.
  • On May 2, 2012, Reuters reported that Wal-Mart Stores Inc agreed to pay $4.8 million in back wages and damages to thousands of employees for unpaid overtime after a probe by the U.S. Department of Labor found that the retailer had violated a federal law governing overtime pay. Wal-Mart will also pay $463,815 in civil fines.
  • On April 23, 2012, Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, the securities litigation firm of Powers Taylor, LLP (and other law firms) announced that the firms are investigating legal claims against the officers and Board of Directors of Wal-Mart Stores, Inc., for potential breaches of fiduciary duties and violations of the Foreign Corrupt Practices Act (OTCPK:FCPA).
  • On March 1, 2012, Wal-Mart Stores, Inc. announced that it has approved an annual dividend of $1.59 per share, approximately a 9% increase from the $1.46 per share paid during fiscal year 2012.
  • On February 21, 2012, Wal-Mart Stores, Inc. announced that for first quarter of 2013, it expects diluted earnings per share to be in the range of $1.01-$1.06. For fiscal 2013, it expects diluted EPS to be in the range of $4.72- $4.92. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.05 for first quarter of 2013 and EPS of $4.90 for fiscal 2013.
  • On February 20, 2012, Wal-Mart Stores, Inc. announced that it has reached an agreement to increase its investment in the holding company of Yihaodian, a fast-growing eCommerce website in China, to bring Walmart's total ownership stake to approximately 51%. Closing of the transaction is subject to Chinese government regulatory approval.

Competitors

Costco (NASDAQ:COST), Dollar General (NYSE:DG), Target (NYSE:TGT), and Walgreen (WAG) are peers for comparison for Wal-Mart and the table below provides the key metrics for these companies and the industry.

Wal-Mart Stores Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

WMT Chart

WMT data by YCharts

Competitors' Latest Development

  • On July 19, 2012, Express Scripts Holding Co and Walgreen Co announced the companies have reached a multi-year pharmacy network agreement that includes rates and terms under which Walgreen will participate in the broadest Express Scripts retail pharmacy network available to new and existing clients.
  • On July 12, 2012, Walgreen Co announced consistent with its Board of Directors succession and rotational planning process, the appointment of James A. Skinner, Walgreen Board member since 2005 and recently retired McDonald's Chief Executive Officer, as the new non-Executive Chairman of the Board of Walgreen.
  • On July 6, 2012, Reuters reported that Five big U.S. retailers filed an antitrust lawsuit against Pfizer Inc and India's Ranbaxy Laboratories Ltd, accusing them of conspiring to delay sales of generic versions of Lipitor.
  • On July 5, 2012, Target Corp. announced that combined with the outlook for July, the Company is on-track to deliver second quarter sales and adjusted earnings per share in line with the guidance provided at the time of first quarter earnings release.
  • On July 5, 2012, Walgreen Co announced that it has entered into an agreement to purchase a regional drugstore chain in the mid-South region of the United States from Stephen L. LaFrance Holdings, Inc. and members of the LaFrance family.
  • On June 28, 2012, Dollar General Corp. announced the pricing of an offering of $500 million of its 4.125% Senior Notes due 2017 (the Notes). The Notes, which are fully and unconditionally guaranteed on a senior unsecured basis by each domestic subsidiary of Dollar General that guarantees its senior secured credit facilities, will pay interest at a rate of 4.125% per annum semi-annually on January 15 and July 15 of each year, commencing January 15, 2013.
  • On June 19, 2012, Walgreen Co and Alliance Boots GmbH, announced that they have entered into a strategic transaction designed to bring together the strengths of both companies to create the global pharmacy-led, health and wellbeing enterprise.
  • On June 19, 2012, Walgreen Co announced an increase in the quarterly dividend of 22.2% to $0.275 per share from the previous rate of $0.225 per share. The dividend declared by the Board is payable September 12, 2012, to shareholders of record August 17, 2012.
  • On June 15, 2012, Controladora Comercial Mexicana SAB de CV announced that it has reached an agreement to sell its entire stake in Costco de Mexico SA de CV to Costco Wholesale Corp at a total value of MXN 10,650 million.
  • On June 13, 2012, Target Corp. announced that its Board of Directors has declared a quarterly dividend of $0.36 per common share. The dividend is payable September 10, 2012 to shareholders of record at the close of business August 15, 2012.
  • On June 4, 2012, Dollar General Corp. announced that it continues to expect total sales for fiscal 2012 to increase 8% to 9% over the 53 week fiscal 2011, or 10% to 11% on a comparable 52-week basis.
  • On June 4, 2012, Walgreen announced an extended, multi-year agreement in which Walgreen will build on its strategic partnership with OptumRx, one of the pharmacy benefit managers in the United States.
  • On May 30, 2012, Walgreen Co's Take Care Health Systems and The Valley Health System announced a new relationship that will facilitate greater clinical coordination and enhance access to convenient and affordable health care options available at Take Care Clinics in Southern Nevada.
  • On May 16, 2012, Target Corp. announced that for the second quarter of 2012, it expects adjusted EPS of $1.04 to $1.14 and GAAP EPS of $0.94 to $1.04. For fiscal 2012, the Company has raised its guidance by 5 cents and now expects adjusted EPS of $4.60 to $4.80 and GAAP EPS of $4.10 to $4.30. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.00 for the second quarter of 2012; EPS of $4.29 for fiscal 2012.
  • On May 7, 2012, Walgreen Co announced that it has completed its acquisition of certain assets of BioScrip, Inc.'s community specialty pharmacies and centralized specialty and mail service pharmacy businesses.
  • On April 5, 2012, Target Corp. updated first quarter 2012 guidance and expects adjusted earnings per share in the range of $1.04 to $1.10, compared with prior guidance of $0.97 to $1.07. The company expects GAAP EPS of $0.96 to $1.02, compared with prior guidance of $0.88 to $0.98. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.03 for fiscal 2012.
  • On March 22, 2012, Dollar General Corp. announced that for fiscal 2012, it expects total sales to increase 10% to 11% on a comparable 52-week basis, Same-store sales, based on a comparable 52-week period, are expected to increase 3% to 5%, operating profit (EBIT) is expected to be between $1.60 and $1.65 billion.
  • On March 19, 2012, Target Corporation announced that, as expected, it has completed the $10 billion share repurchase program authorized by its board of directors in November 2007.
  • On March 15, 2012, Target Corp. announced that it has declared a quarterly dividend of 0.30 per common share. The dividend is payable June 10, 2012 to shareholders of record at the close of business May 16, 2012.
  • On February 23, 2012, Target Corp. announced that for first quarter of 2012, it expects adjusted earnings per share in the range of $0.97 to $1.07 and GAAP EPS of $0.88 to $0.98. The 9 cent difference between these two ranges represents the EPS impact in the quarter of the expected expenses related to the Canadian market entry.
  • On February 16, 2012, Walgreen Co and Greystone Healthcare Management announced that they have launched a collaborative therapy management pilot program at the Lady Lake Specialty Center in Lady Lake, Fla., aimed at enhancing medication adherence and reducing readmissions rates for patients in post-acute care settings.

Technical Overview


The stock has a market capitalization of $249.87B and is currently trading at $73.85 with a 52 week range of $49.28 - $75.24. The stock's year-to-date performance has been 25.92%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Earnings Preview: Wal-Mart

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