Wal-Mart Stores, Inc. (WMT) Finds It Hard to Grow

Wal-Mart Stores, Inc. (NYSE:WMT) announced its second-quarter results today and again failed to beat analysts’ expectations. The company witnessed its seventh straight quarter of traffic decline. Although Wal-Mart Stores, Inc. (NYSE:WMT) saw growth in every country except China, it’s the company’s U.S. Supercenters sales that have dampened the spirits of analysts and investors. The company’s Neighborhood Market and smaller format stores also saw an increase in sales, but not enough to cover for the decline in sales at its supercenters. The worst news for Wal-Mart Stores, Inc. (NYSE:WMT)’s investors in the second quarter results was the company cutting down its earnings forecast for the year.

Wal-Mart (WMT)

Julie Hyman from Bloomberg broke down Wal-Mart Stores, Inc. (NYSE:WMT) second quarter results and discussed the road ahead for the company.

“Wal-Mart Stores, Inc. (NYSE:WMT) has been struggling. On a sort of incremental basis things got a very little bit better, after five quarters of declining comparable sales, it came in with flat comparable sales, but that’s probably the best of the news because Wal-Mart Stores, Inc. (NYSE:WMT) cut its forecast for full year earnings. Now it’s looking for $4.90 to $5.50 a share, before it has looked at as much as $5.45 [...],” Hyman said

Hyman mentioned that Wal-Mart Stores, Inc. (NYSE:WMT) is not pointing to anything that is wrong with its core business for the decline in sales, but instead is pointing to other things like healthcare costs, rising taxes and its e-commerce investments. Hyman also highlighted that Wal-Mart Stores, Inc. (NYSE:WMT) said while releasing its earnings that it expects its e-commerce arm to grow at a slightly lower pace than what it expected earlier.

“So, the new CEO of U.S. Business, it seems like he is well regarded, but it’s just the matter of the big challenges he has ahead of him. There are things that are not under Wal-Mart Stores, Inc. (NYSE:WMT)’s control [...],” Hyman added.

Disclosure: None

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!