In what may be the most cryptic press release from Walmart yet, the company just issued an 8-K which [3]consisted all of 5 bullet points, a few charts, and precious little else. Perhaps the reason for the pithy transmission is that WMT had nothing good to say: Revenue declined from $115 billion to $114.8 billion, missing expectations of a jump to $116.2 billion, EPS also missed at $1.03, vs $1.05 expected, operating income tumbled 8.3% from $6.2 billion to $5.7 billion, and finally comp store sales also missed at 1.0%, below the 1.5% expected. With these results, anyone would be short and to the point.
[4]
After previously providing extensive explanations for why the massive Apple Sachs Industrial Member member missed, this quarter the firm almost didn't even bother to scapegoat. This is what it said:
"Consolidated operating income declined 8.3%, due to impacts from currency fluctuations and investments in associate wages & training and e-commerce."
As if it didn't even bother to put in the effort to find a reason for the 8.3% plunge in operating income.
Finally, even the company's guidance was berely there. From Charles Holley, Executive Vice President and CFO, Wal-Mart Stores, Inc.
"Based on our views of the global macro-economic environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2016 earnings per share to range between $1.06 and $1.18. Our second quarter guidance includes the impact of approximately $0.04 per share from our previously announced investments in both U.S. associate wages and training, as well as $0.04 per share from currency."
Wall Street currently expects a Q2 EPS print of $1.17.
And with this latest bellwether miss, expect the S&P to close at a recorder high today.
