Executive Summary

• Walmart reported 1Q17 EPS of $0.98 versus the consensus estimate of $0.88.
• Walmart US comps were up 1% versus consensus of 0.5% and guidance of 0.5%. Sam’s Club comps, excluding fuel, were up 0.1% versus analysts’ expectations of a 0.1% decline and guidance of around flat. Comps at Walmart US were driven by a 1.5% increase in traffic that was partially offset by a 0.5% decline in average ticket.
  E-commerce added 20 basis points to the total comp. Excluding fuel, Sam’s Club traffic was down 0.2% and average ticket was up 0.3%. E-commerce benefited Sam’s Club comps by 60 basis points.
• Management provided 2Q17 EPS guidance of $0.95–$1.08 versus consensus of $0.98. Comps are expected to increase by 1% at Walmart US versus consensus of 0.7%. Comps are expected to be slightly positive at Sam’s Club, excluding fuel, versus consensus of a 0.1% decline.