Earnings Preview: Wal-Mart Stores' EPS, Revenue Expected to Rise

Wal-Mart Stores WMT releases its next round of earnings this Tuesday, August 16, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of $1.08/share and revenues of $108.26 billion. Wal-Mart Stores' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 97 cents/share on revenues of $103.73 billion. We'll know on Tuesday whether Wal-Mart Stores has managed the estimated 11.3% increase in EPS and 4.4% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.95	$1.31	$0.90	$0.96
EPS Actual	$0.98	$1.34	$0.90	$0.97

Stock Performance:

Shares of Wal-Mart Stores were trading at $48.41 as of August 10, 2011. Shares are down 8.3% year to date. For a full 12 months, the return has declined by 7.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Wal-Mart Stores is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Wal-Mart Stores' peers.

• Amazon.com AMZN: Moderate Buy with a $0.38 recent quarter EPS
• BJ's Wholesale Club BJ: Hold with a $0.63 recent quarter EPS
• Costco Wholesale COST: Hold with a $0.80 recent quarter EPS
• Dollar General DG: Moderate Buy with a $0.48 recent quarter EPS

Wal-Mart Stores is in the retail-supermarket industry, which has experienced price/earnings growth of 1.1%.

Finally, a description of the company's main areas of operation: Wal-Mart Stores operates Walmart discount stores, supercenters, Neighborhood Markets and Sam's Club.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Wal-Mart Stores earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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