Wal-Mart's 3Q10 EPS Review

Citi published its update on Wal-Mart Stores WMT following 3Q10 EPS results. WMT's 3Q10 EPS results were a penny below Citi's estimate. This reflected a lower-than-expected gross margin contraction and lower-than-expected expense leverage. According to Citi, "WMT raised its 2010 EPS guidance to $4.08-$4.12, vs. $3.95-$4.05 prev. Excluding the approx. $0.05/share tax benefit from 3Q, guidance would be $4.03-$4.07, which encompasses our updated 2010 EPS estimate of $4.04." WMT is trading at $54.10.