Walmart Stock Slides After EPS Miss, Profits Tumble, Full Year Guidance Slashed

• Despite reporting revenue of $120.2 billion, or virtually unchanged from a year ago, and above the $119.7 billion expected, WMT reported EPS of $1.08, below the exp. $1.12. WMT promptly blamed exchange rates as the culprit for the $0.04 miss. Needless to say, when the dollar is weak no company ever says "EPS beat by $X.XX because of a favorable exchange rate."
• The first problem emerged when looking at operating income, which dropped by -10.0% consolidated, and tumbled by a whopping -14.2% in the firm's international stores.
• What was even more problematic is that while Wal-Mart reported a 4.8% increase in Net Sales in the US, rising to $74 billion, domestic Operating Income also tumbled by 8.2% to $4.8 suggesting there is a significant margin compression going on.  Expect mass layoffs next as the company realizes that boosting minimum wages always has a profit trade off.
• Then there was the most important factor: free cash flow. "Free cash flow was $5.1 billion for the six months ended July 31, 2015, compared to $6.8 billion in the prior year. The decrease in free cash flow was due to lower income from continuing operations and the timing of payments."
• But the worst news for WMT shareholders, and the reason why the stock is down 3% pre-market is because the company slashed its guidance as follows: Walmart updated full year EPS guidance to a range of $4.40 to $4.70, from a previous range of $4.70 to $5.05. This range includes Q3 EPS guidance of $0.93 to $1.05.
  
  
  
  
  
  |Gonna be a sour Christmas this year, of course the Main Stream shills will claim " It was the best shopping season ever!! " that and pull out old fake video footage from yeas ago showing people waiting in lines or trampling over each other for cheap Chinese goods....its all staged, just look at the videos closely, its the clothing that people are wearing that is the dead give away lol...