Serge Fave, well … I guess former Serge Fave Walmart (WMT) released the firm’s first quarter financial results on Tuesday morning. This result was bad. Kind of make me feel like a fool. For the three-month period ending April 30th … Walmart posted a consistent EPS of 30 1.30 (GAAP EPS: $ 0.74) on $ 141.6B earnings. Revenue held the edge of print expectations and was good for year-on-year growth of 2.4%. The bottom line number missed by a country mile. Yeah Al that sounds pretty crap to me, Looks like Walmart aint for me either.
Some nitty gritty
Walmart US comp sales grew 3% year-over-year or 9% on a two-year stack. E-commerce sales grew 1% year-over-year or 38% on a two-year stack. Sales club comp sales increased 10.2% or 17.4% over the two-year stack. International sales printed at $ 23.8B, $ 3.5B, or 13% less Compass was positive in all international markets. Aggregate results have been negatively affected by the $ 5B dividends and the $ 400M exchange rate fluctuations. Worldwide advertising has grown by 30%. Consolidated operating income fell 23% to 5.3B, which was affected by splitting, fuel prices, aggressive inventory building and rising labor costs.
CEO Doug Macmillan in the quarter …
From the press release .. “The following results were unexpected and reflected the unusual environment. US inflation levels, especially food and fuel, margin blending and operating costs put more pressure than we expected. We are adjusting and balancing its needs for our future.” Our customers are in for a treat with the need to increase profits. “
Surge on CEO Doug Macmillan …
Thinking hard … Unusual? “Unexpected?” Target (TGT) reports tomorrow morning. Costco (COST) reports next Thursday, May 26th. It was good to tell these two contestants stories of similar misery and to be amazed by the environment. Yes, this environment is difficult. If these two agencies are better prepared and do a better job of working in that difficult environment, we will know who we can blame.
Walmart … Net sales rose 4% to $ 96.9B, creating an operating income of $ 4.5B, down 18.2%.
Walmart International … Net sales fell 13.0% to $ 23.8B, creating an operating income of $ 800M, down 33.7% from a constant currency.
Sam’s Club … Net sales rose 17.5% to .6 19.6B. Produced operating income of $ 500M, which was 20% less.
For the current quarter … Consolidated net sales are seen to increase by 5%, which generates consolidated operating income which is slightly flattened above and EPS which is flattened slightly above.
For the whole year … Consolidated net sales are seen to increase by 4% in fixed currency, which generates consolidated operating income which is about 1% less in fixed currency and an EPS which is reduced by about 1%.
Walmart ended the quarter with a net cash position of .8 11.817B, down nearly half from a year earlier. Most of this cash was spent on inventory. Inventories stood at 61.229B, bringing current assets to $ 83.22B. The current liability totals $ 96.53B since the short-term loan amount reached $ 11.432B from $ 410M just three months ago. This leaves the firm with a current ratio of 0.86, which has been in a steady decline for several quarters now, and in my book it is fairly terrible. Ex-inventory (because inventory, especially out-of-season inventories rarely hold their value), and Walmart stands at a rapid ratio of 0.23. This number actually makes me physically ill.
Add total assets of $ 246.142B of which $ 29.438B is “good luck”, where the total liability is less than the equity amount of $ 160.542B. These numbers include দীর্ঘ 32.174B on long-term loans, $ 11.432B on short-term loans, and $ 13.226B on long-term lease obligations. I dare say that the “unexpectedly difficult” environment should be “unexpectedly difficult” depending on how well the firm manages, which can affect the firm’s ability to meet the short-term cash needs of large-scale inventory firms.
No, Walmart’s balance sheet does not pass the surge test. In fact, Walmart isn’t even close. I am ashamed that I name this long.
Walmart is technically super-selling, and based on the basics it deserves. I don’t think investors need to say how important the $ 132.50 level is. That orange line breaks and Walmart heads for the Netherlands. Until then the stock will be transferable. I actually shared a lot more at the moment I was very early. Because I’m trying to trade my way out of this.
Make no mistake, I’m leaving Walmart. Only 15 times the forward earnings by trading targets, and at least for now, I have a high opinion of Brian Cornell. Costco is 37 times more expensive, which makes it difficult to purchase right now, but there should be no question about the corporate performance of that firm. Probably at least some of the earnings between these two stocks are moving. Going in a little, and getting a little out of earning.
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