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Thursday, November 14, 2019

=Walmart (WMT) reported earnings on Thur 14 Nov 19 (b/o)

Walmart beats by $0.07, reports revs in-line, U.S. comps +3.2%; raises FY20 Adj-EPS outlook

  • Reports Q3 (Oct) earnings of $1.16 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $1.09; revenues rose 2.5% year/year to $126.98 bln vs the $128.08 bln S&P Capital IQ Consensus.
  • All three business segments delivered solid sales growth, with Walmart International's constant currency sales up nearly five percent and Walmart U.S. comp sales up 3.2% (vs. estimates for up 3.1%).
  • Updated Outlook:
    • We now expect FY20 adjusted EPS, including Flipkart, to be up slightly compared to our prior guidance of "down slightly to up slightly". Excluding Flipkart, FY20 adjusted EPS is expected to increase by a high 16 single-digit percentage range versus our prior guidance of a "mid to high single-digit percentage increase."
    • Expectations for the dilution from Flipkart remain unchanged, excluding a non-cash impairment charge.
    • As always, we have several assumptions in our guidance, including that economic conditions, currency rates, and the tax and regulatory landscape remain generally consistent. We have not included any potential change in the future value of our investment in Also, we're still assessing the ongoing civil unrest in Chile and have not included any related potential discrete financial effects in our assumptions. We expect currency to be a continued headwind in Q4. Based on current exchange rates, we estimate net sales will be slightly negatively affected by about $100 million in the fourth quarter.
    • We're continuing to monitor the ongoing tariff discussions and are hopeful that an overarching long-term agreement can be reached. Our merchants continue to execute appropriate mitigation strategies as our goal is to be the low-price leader.
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