Walmart have undergone some restructuring which has had a positive impact on the bottom line. With more focus on online sales and improvements in organization of inventory, sales are likely to improve in the coming year. Despite an apparent growth in sales, international exposure to currency fluctuations and the high costs of restructuring are expected to have a drag on earnings for the past quarter. The overall consensus from market is fairly neutral on Walmart stock ahead of the earnings announcement on 19th February 2015.
Investors Notes:
- Earnings for the quarter are set to fall by 4% to $1.54 per share from $1.60 per share with a projected 2.3% fall in earnings for the year.
- Stock is trading close to a 1 year high of $91 at $85.80 and below the 50 day moving average of around $87.
- The trend is bearish for Walmart, with a 13% rise in selling positions on Walmart stock options during January.
- Revenue is projected to rise by 2.6% from $ 129.71 billion in 2013 to $132.46 billion in 2014.
- Banc De Binary analysts predict that the earnings announcement will be mixed, indicating a potential long-term downward movement in Walmart stock.