Dive Summary:
- Wal-Mart released disappointing Q1 results on Thursday in a pre-market call that disappointed market observers. Wal-Mart stock is down 2.8% in early trading.
- Same store sales declined 1.4%; net income was $3.78 billion or $1.14 per share. This is up from $1.09 per share in Q1 of last year, however, consensus analyst estimates were expecting $1.15 per share.
- Unseasonably cold weather was cited by the company as a key reason why numbers were soft. Wal-Mart competitor, Target, also recently cited the cold spell when announcing weak numbers.
Read more coverage of Wal-Mart's earnings report; USA Today, NY Times, Investors Business Daily
From the article:
“Frankly,” says CEO Mike Duke,” we had a more difficult quarter than expected when we announced our guidance in February,” when the company forecast $1.11 to $1.16 a share in first-quarter earnings. Even then observers felt the numbers were weak.
