It's deja vu time for Wal-Mart. Spot the trend:
- Q1: Wal-Mart Misses Revenue, Guides Below Expectations: Weather Among Factors Blamed [4]
- Q2: Wal-Mart Misses, Guides Below Expectations; Blames Weak Consumer Spending, Payroll Tax, FX And Lack Of Inflation [5]
Spot it yet? Good. Sure enough, in Q3 continuing the trend, moments ago Wal-Mart just missed revenues, and you got it: lowered guidance.
Full breakdown:
- EPS $1.14 vs Expectations of $1.13. This was driven by a buyback of 23 million shares for $1.7 billion in the quarter
- Revenues missed $115.69 billion vs Expectations of $116.82 billion
- Q3 WalMart US comp store sales missed, and ex-fuel printed at -0.3% vs +0.5% expected, and down from +1.5% a year earlier
- Q3 Total comp store sales missed, ex-fuel printed at -0.1%, +0.3% expected, and down from +1.7% a year earlier
- WMT guided to Q4 EPS of 1.50-1.60 (including adjustments) vs expectations of $1.69
- WMT guided to year end EPS of $5.01-$5.11 (including adjustments) vs a previous guidance of $5.10-$5.30
From the report:
"For the fourth quarter, we expect EPS to range between $1.50 and $1.60. Our guidance includes the impact of approximately $0.10 per share for certain items described below. Accounting for these factors, we believe our fourth quarter underlying1 EPS will range between $1.60 and $1.70," said Holley.
"For the full year, we are updating our EPS guidance to range between $5.01 and $5.11. Accounting for the $0.10 of certain items that will impact the fourth quarter, our full year underlying1 EPS will range between $5.11 and $5.21," added Holley.
The company's guidance reflects a view of global economic trends, including ongoing headwinds from currency exchange rate fluctuations, a competitive holiday season, and a full-year effective tax rate that is expected to range between 31 and 33 percent.
And the punchline:
"A challenging global economy and negative currency exchange rate fluctuations impacted our sales growth in the third quarter," said Doug McMillon, Walmart International president and CEO. "In the fourth quarter, we will continue our progress on managing expenses well and staying focused on growing sales, including e-commerce. Still, the slow-growth macroeconomic environment is persisting through the first month of this quarter, and the markets continue to be competitive."
And now, BTFATH.