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Walmart Misses Across The Board, Guides Lower: Blames It On Weather, Obamacare And Taxes
May 16, 2014 09:30:53   #
Patty
 
In yet another quarter confirming that Walmart is merely a company that can beat analyst expectations when it cashes Uncle Sam's welfare checks and foodstamps, when the impact of Obamacare is ignored, and when the second it snows all bets are off, WalMart reported Q1 EPS of $1.10, below the $1.15 expected, even if the company was able to explicitly quantify what the impact of snow in the winter was: "Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03." Apparently the weather's impact on the top line was over $1 billion because revenues came in at $114.96 billion, below the $116.3 billion expected.

In fact the weather in the quarter ended April 30 (when as far as we can recall there was only snow in February because retail sales in March soared on the snow thawing) was so bad, the company dedicated an entire section to it:


"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer.

Comp stores of -0.2% missing expectations of 0.0% were also due to, you guessed it, ther weather:


"Our comp of negative 8 basis points for the period was in line with our relatively flat guidance," said Bill Simon, Walmart U.S. president and CEO. "A number of severe winter storms negatively impacted us during the quarter. A solid start to spring and a strong Easter drove positive comps in the back half of the quarter.

And then there were taxes:


Additionally, the company's effective tax rate for the quarter was higher than anticipated. The company still expects the full-year tax rate to range between 32 and 34 percent.

How long until WMT buys a Dutch company and reincorporates there to save on taxes?

Ok fine, weather (and taxes) were to blame for everything in the past. So what about the future? Well, WMT forecast a Q2 EPS range of $1.15-$1.25, below the $1.29 consensus, for the following reasons:


"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," said Charles Holley, executive vice president and chief financial officer. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

So to summarize: weather, Obamacare and taxes. And of course, we expect that the lack of foodstamps will also be discussed on the earnings call.

Of course, the only reason why the company's EPS disappointed is that while WMT CapEx tumbled from $3.0 billion a year ago to just $2.2 billion this quarter, so did buybacks, as the company repurchased a measly $626 million of stock down from $2.2 billion a year ago. Judging by the stock reaction in the premarket, shareholders are anything but happy with this outcome.



Reply
May 16, 2014 09:41:53   #
jay-are
 
Patty wrote:
In yet another quarter confirming that Walmart is merely a company that can beat analyst expectations when it cashes Uncle Sam's welfare checks and foodstamps, when the impact of Obamacare is ignored, and when the second it snows all bets are off, WalMart reported Q1 EPS of $1.10, below the $1.15 expected, even if the company was able to explicitly quantify what the impact of snow in the winter was: "Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03." Apparently the weather's impact on the top line was over $1 billion because revenues came in at $114.96 billion, below the $116.3 billion expected.

In fact the weather in the quarter ended April 30 (when as far as we can recall there was only snow in February because retail sales in March soared on the snow thawing) was so bad, the company dedicated an entire section to it:


"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer.

Comp stores of -0.2% missing expectations of 0.0% were also due to, you guessed it, ther weather:


"Our comp of negative 8 basis points for the period was in line with our relatively flat guidance," said Bill Simon, Walmart U.S. president and CEO. "A number of severe winter storms negatively impacted us during the quarter. A solid start to spring and a strong Easter drove positive comps in the back half of the quarter.

And then there were taxes:


Additionally, the company's effective tax rate for the quarter was higher than anticipated. The company still expects the full-year tax rate to range between 32 and 34 percent.

How long until WMT buys a Dutch company and reincorporates there to save on taxes?

Ok fine, weather (and taxes) were to blame for everything in the past. So what about the future? Well, WMT forecast a Q2 EPS range of $1.15-$1.25, below the $1.29 consensus, for the following reasons:


"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," said Charles Holley, executive vice president and chief financial officer. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

So to summarize: weather, Obamacare and taxes. And of course, we expect that the lack of foodstamps will also be discussed on the earnings call.

Of course, the only reason why the company's EPS disappointed is that while WMT CapEx tumbled from $3.0 billion a year ago to just $2.2 billion this quarter, so did buybacks, as the company repurchased a measly $626 million of stock down from $2.2 billion a year ago. Judging by the stock reaction in the premarket, shareholders are anything but happy with this outcome.
In yet another quarter confirming that Walmart is ... (show quote)


Lower earnings and lower dividend payments means less tax money paid to the government, so it is not all bad.

Reply
May 16, 2014 09:50:53   #
lpnmajor Loc: Arkansas
 
Patty wrote:
In yet another quarter confirming that Walmart is merely a company that can beat analyst expectations when it cashes Uncle Sam's welfare checks and foodstamps, when the impact of Obamacare is ignored, and when the second it snows all bets are off, WalMart reported Q1 EPS of $1.10, below the $1.15 expected, even if the company was able to explicitly quantify what the impact of snow in the winter was: "Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03." Apparently the weather's impact on the top line was over $1 billion because revenues came in at $114.96 billion, below the $116.3 billion expected.

In fact the weather in the quarter ended April 30 (when as far as we can recall there was only snow in February because retail sales in March soared on the snow thawing) was so bad, the company dedicated an entire section to it:


"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer.

Comp stores of -0.2% missing expectations of 0.0% were also due to, you guessed it, ther weather:


"Our comp of negative 8 basis points for the period was in line with our relatively flat guidance," said Bill Simon, Walmart U.S. president and CEO. "A number of severe winter storms negatively impacted us during the quarter. A solid start to spring and a strong Easter drove positive comps in the back half of the quarter.

And then there were taxes:


Additionally, the company's effective tax rate for the quarter was higher than anticipated. The company still expects the full-year tax rate to range between 32 and 34 percent.

How long until WMT buys a Dutch company and reincorporates there to save on taxes?

Ok fine, weather (and taxes) were to blame for everything in the past. So what about the future? Well, WMT forecast a Q2 EPS range of $1.15-$1.25, below the $1.29 consensus, for the following reasons:


"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," said Charles Holley, executive vice president and chief financial officer. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

So to summarize: weather, Obamacare and taxes. And of course, we expect that the lack of foodstamps will also be discussed on the earnings call.

Of course, the only reason why the company's EPS disappointed is that while WMT CapEx tumbled from $3.0 billion a year ago to just $2.2 billion this quarter, so did buybacks, as the company repurchased a measly $626 million of stock down from $2.2 billion a year ago. Judging by the stock reaction in the premarket, shareholders are anything but happy with this outcome.
In yet another quarter confirming that Walmart is ... (show quote)


Another reason not to increase the minimum wage. I mean, how could Walmart survive on less than 100 billion dollars profit?

Reply
 
 
May 16, 2014 10:21:34   #
Patty
 
I remember back about 20 years ago that the economic barometer used to be Alcoa and everyone waited for them to come out with their quarterlies. It is now Walmart that everyone seems to look at as the economic barometer. Or at least that is the way it seems to me. I have been out of the markets for a little over 10 years and despite the trumpted up markets it is no longer a game of ingenuity or smarts but of chance and cronyism. I would probably loss my ass in todays market.

Reply
May 16, 2014 11:37:58   #
jonhatfield Loc: Green Bay, WI
 
Patty wrote:
I remember back about 20 years ago that the economic barometer used to be Alcoa and everyone waited for them to come out with their quarterlies. It is now Walmart that everyone seems to look at as the economic barometer. Or at least that is the way it seems to me. I have been out of the markets for a little over 10 years and despite the trumpted up markets it is no longer a game of ingenuity or smarts but of chance and cronyism. I would probably loss my ass in todays market.



"...would probably loss my ***"...not exactly the language of a "lady".....

And Alcoa, huh? I thought aluminum was already non-speculative near 50 years ago...incidental news only in Alcoa's East Tennessee locale. So now the locale for market clues has moved west to Arkansas and big lot groceries? Who would have thought? :roll: :roll:

Reply
May 16, 2014 12:03:48   #
Serenity54321
 
Patty wrote:
In yet another quarter confirming that Walmart is merely a company that can beat analyst expectations when it cashes Uncle Sam's welfare checks and foodstamps, when the impact of Obamacare is ignored, and when the second it snows all bets are off, WalMart reported Q1 EPS of $1.10, below the $1.15 expected, even if the company was able to explicitly quantify what the impact of snow in the winter was: "Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03." Apparently the weather's impact on the top line was over $1 billion because revenues came in at $114.96 billion, below the $116.3 billion expected.

In fact the weather in the quarter ended April 30 (when as far as we can recall there was only snow in February because retail sales in March soared on the snow thawing) was so bad, the company dedicated an entire section to it:


"Walmart's first quarter net sales increased 0.8 percent over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," said Doug McMillon, Wal-Mart Stores, Inc. president and chief executive officer.

Comp stores of -0.2% missing expectations of 0.0% were also due to, you guessed it, ther weather:


"Our comp of negative 8 basis points for the period was in line with our relatively flat guidance," said Bill Simon, Walmart U.S. president and CEO. "A number of severe winter storms negatively impacted us during the quarter. A solid start to spring and a strong Easter drove positive comps in the back half of the quarter.

And then there were taxes:


Additionally, the company's effective tax rate for the quarter was higher than anticipated. The company still expects the full-year tax rate to range between 32 and 34 percent.

How long until WMT buys a Dutch company and reincorporates there to save on taxes?

Ok fine, weather (and taxes) were to blame for everything in the past. So what about the future? Well, WMT forecast a Q2 EPS range of $1.15-$1.25, below the $1.29 consensus, for the following reasons:


"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," said Charles Holley, executive vice president and chief financial officer. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

So to summarize: weather, Obamacare and taxes. And of course, we expect that the lack of foodstamps will also be discussed on the earnings call.

Of course, the only reason why the company's EPS disappointed is that while WMT CapEx tumbled from $3.0 billion a year ago to just $2.2 billion this quarter, so did buybacks, as the company repurchased a measly $626 million of stock down from $2.2 billion a year ago. Judging by the stock reaction in the premarket, shareholders are anything but happy with this outcome.
In yet another quarter confirming that Walmart is ... (show quote)




#########
Wow, we better save the largest retailer in the world by bumping the food stamps back up, lowering their taxes, and forcing the sun to shine. Hurry we have no time to waste!
:-P

Reply
May 16, 2014 12:09:11   #
She Wolf Loc: Currently Georgia
 
The t***h would have been: Sorry folks but we are loosing our corp. welfare. We may have to pay a livable wage, furnish insurance for our employees, instead of relying upon tax payers to do it for us, and our employees may not qualify for food stamps anymore.

I am sorry but it couldn't happen to nicer folks.

Reply
 
 
May 16, 2014 12:18:55   #
Patty
 
"jonhatfield wrote:
"Putin had a little Patty,
Its baa''s as loud as Moscow moo's...
And everywhere that Patty went,
Everything that Putin sent,
Little Patty baaed out as news.."
Not the language of a grown man.
You're an i***t and really shouldn't talk about things you know nothing about.
"These five economic barometer stocks point to a higher market: Alcoa (AA), Pepsico (PEP), CSX (CSX), Intel (INTC) and JPMorgan Chase (JPM). They tell us that we’re shipping more goods, sales are improving, capital expenditure is rising in key areas such as consumer goods and railroads, and credit card debt write-offs are declining - in total, much more revealing than GDP numbers. "
http://seekingalpha.com/news/58469

:lol: :lol: :lol: :lol:

Reply
May 16, 2014 13:09:35   #
jonhatfield Loc: Green Bay, WI
 
Patty wrote:
"jonhatfield wrote:
"Putin had a little Patty,
Its baa''s as loud as Moscow moo's...
And everywhere that Patty went,
Everything that Putin sent,
Little Patty baaed out as news.."
Not the language of a grown man.
You're an i***t and really shouldn't talk about things you know nothing about.
"These five economic barometer stocks point to a higher market: Alcoa (AA), Pepsico (PEP), CSX (CSX), Intel (INTC) and JPMorgan Chase (JPM). They tell us that we’re shipping more goods, sales are improving, capital expenditure is rising in key areas such as consumer goods and railroads, and credit card debt write-offs are declining - in total, much more revealing than GDP numbers. "
http://seekingalpha.com/news/58469

:lol: :lol: :lol: :lol:
"jonhatfield wrote: br "Putin had a lit... (show quote)


A 2010 AA link :roll: is cited as proof of Patty economics knowledge??! :roll: :roll:

Relying on 4 year old stats, Patty should really worry that "could loss my *** in today's market." Good thing Patty left AA aluminum-based speculation for gold ten years ago.

:XD: :XD: :XD: :XD:

Reply
May 16, 2014 13:16:13   #
Patty
 
You'll have to use your toes and fingers this time i***t. I said "20 years ago". Buzz your nurse and have her come read it to you again moron.


jonhatfield wrote:
A 2010 AA link :roll: is cited as proof of Patty economics knowledge??! :roll: :roll:

Relying on 4 year old stats, Patty should really worry that "could loss my *** in today's market." Good thing Patty left AA aluminum-based speculation for gold ten years ago.

:XD: :XD: :XD: :XD:


:lol: :lol: :lol:

Reply
May 16, 2014 13:38:05   #
jonhatfield Loc: Green Bay, WI
 
Patty wrote:
I remember back about 20 years ago that the economic barometer used to be Alcoa and everyone waited for them to come out with their quarterlies. It is now Walmart that everyone seems to look at as the economic barometer. Or at least that is the way it seems to me. I have been out of the markets for a little over 10 years and despite the trumpted up markets it is no longer a game of ingenuity or smarts but of chance and cronyism. I would probably loss my ass in todays market.

Reply
 
 
May 16, 2014 13:40:21   #
Patty
 
Im not going to read it to you. Buzz your nurse stupid.

Reply
May 16, 2014 14:02:15   #
jonhatfield Loc: Green Bay, WI
 
Patty wrote:
Im not going to read it to you. Buzz your nurse stupid.


Patty becomes quite upset when Patty economics smarts and ingenuities are questioned. ha. Patty doesn't want to loss any face or *** in OPP discussions as well as in investment.

In Patty's mind the fed, its fiat money, Alcoa and Walmart stats, etc. are all "trumpted" up--not sure whether that's supposed to be "trumpeted" up or "trumped" up but in Patty yada-yada-yada economics it's all noise and tricks in any case.


:XD: :XD: :XD: :XD:

Reply
May 16, 2014 14:14:36   #
Patty
 
"jonhatfield wrote:
There is zero in my reply to base such an allegation on. I have reported your statements to administration, suggesting they require you to apologize or leave OPP."

:lol: :lol: :lol:

Reply
May 16, 2014 14:47:38   #
jonhatfield Loc: Green Bay, WI
 
Patty wrote:
"jonhatfield wrote:
There is zero in my reply to base such an allegation on. I have reported your statements to administration, suggesting they require you to apologize or leave OPP."

:lol: :lol: :lol:


That was when another poster suggested I was a p*******e. Patty reported and was instrumental in a young woman being banned from OPP. Would you care to explain what your beef there was, Patty? :roll: :roll:

In case no one has noticed, Patty is a bit of a hypocrite as well as quite peeved when P economic expertness is questioned. After all, P pretends to be the OPP resident expert in economic theory, a real "trumpted up" status.

:XD: :XD: :XD: :XD:

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