Seeking Alpha

With low bar to clear, just a glimmer of good news could coax Wal-Mart buyers

  • Based on the rash of analyst downgrades, those who follow Wal-Mart (NYSE:WMT) seem to expect the wheels to fall off when the big-box retailer reports Q2 earnings tomorrow morning.
  • Most closely watched will be WMT's comparable U.S. sales revenue, which has declined Y/Y for five straight quarters; management guidance has called for those sales to be relatively flat, so even tepid growth could boost sentiment.
  • For the 13 quarters since FY 2012, WMT shares have fallen nine times in the following trading session, including the occasions when the result exceeded profit projections; this time, the consensus sees WMT earning $1.21/share, down from $1.24 a year before.
  • At just 14x forward earnings forecasts, even a peep of positive news could bring in bargain hunters, WSJ's Spencer Jakab suspects.
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Comments (1)
  • Sean Erickson
    , contributor
    Comments (269) | Send Message
    as bad as news has been for walmart, shares have actually held up pretty well. Its in shareholders minds that WMT=safety. Only time will tell if its true or not.
    13 Aug, 07:04 PM Reply Like
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