Walmart (WMT) 4Q16 Results: Mostly In-Line Quarter, Outlook Hurt by Store Closures, Strong Dollar

Executive Summary

• Walmart reported fiscal 4Q16 revenues of $129.7 billion, down 1.4% year over year and slightly below the consensus estimate of $130.5 billion. Revenues increased by 2.2% excluding currency effects. Adjusted EPS was $1.49, beating the consensus estimate by three cents, but coming in below adjusted EPS of $1.53 in the year-ago quarter.
• US comps increased by 0.6%, while international sales increased by 3.3% excluding currency and comps at Sam’s Club declined by 0.5% excluding fuel.
• The company reduced its FY17 sales growth guidance to flat from 3%–4% previously, owing to store closures and the strengthening US dollar, and guided for EPS of $4.00–$4.30, in line with the consensus estimate of $4.14.