By Tyler Durden
Walmart is trading 4% higher, pushed Dow futures higher, after reporting Q3 earnings that beat expectations on the top and (adjusted) bottom line – in big part due to the recent hurricanes – while boosting Q4 guidance, despite reporting a decline in profit margins.
The company reported GAAP EPS of $0.58, which however management claimed had to be adjusted for a charge of $0.29 for loss on extinguishment of debt in connection with the company’s recently completed debt tender offer, a charge of $0.09 based on discussions with government agencies regarding the possible resolution of the FCPA matter, and a charge of $0.04 based on the decision to exit certain properties in one of the company’s international markets. As a result, WMT’s non-GAAP Q4 EPS was $1.00, beating the $0.97 expected by Wall Street, as well as its own prior guidance of $0.90-$0.98.A major part of the beat, however, was a one time item: as the company said, Hurricane-related impacts benefited comp sales by approximately 30-50 basis points.
Total revenue was $123.2 billion, an increase of $5.0 billion, or 4.2% from a year prior, and higher than the $121.1 billion expected (the number includes $1.04b from membership and other income).
There …read more