Walmart (WMT) Fiscal 1Q18 Results: Mixed Quarter, Light Guidance

Executive Summary

• Walmart reported fiscal 1Q 2018 EPS of $1.00, up from $0.98 in the year-ago quarter and beating the $0.96 consensus estimate. Total revenues were $117.5 billion, up 1.4% year over year and slightly below the consensus estimate.
• US comp sales increased by 1.4%, in line with consensus, on a 1.5% increase in traffic. E-commerce sales and gross merchandise volume (GMV) increased by 63% and 69%, respectively.
• The $1.04 midpoint of the company’s 2Q18 EPS guidance of $1.00–$1.08 is lower than the $1.07 consensus estimate. Walmart guided for 2Q18 US comps (excluding fuel) of 1.5%–2.0% and Sam’s Club comps (excluding fuel) of 1.0%–1.5%.