Executive Summary

• Walmart reported fiscal 2Q17 adjusted EPS of $1.07 versus the consensus estimate of $1.02.
• Walmart US comps were up 1.6%, driven by a 1.2% increase in traffic and a 0.4% increase in average ticket. Sam’s Club comps (excluding fuel) were up 0.6% versus consensus of (0.1)% and guidance of “slightly positive.” Neighborhood Market comps increased by 6.5%. E-commerce benefited comps by 40 basis points.
• Management raised its full-year EPS guidance from $4.00–$4.30 to $4.15–$4.35, which includes a $0.05 negative impact (primarily in the fourth quarter) related to expected operating losses due to the planned acquisition of Jet.com. Consensus calls for full-year EPS of $4.27.