Wal-Mart (WMT) and Dish Network (DISH) released their latest earnings reports before opening bell this morning. Wal-Mart posted adjusted earnings of $1.49 per share, coming out just ahead of the consensus at $1.46, and revenue of $129.7 billion, missing the consensus at $130.65 billion. The big box retailer had guided for earnings of between $1.40 and $1.55 per share. In the year-ago quarter, revenue was $131.57 billion, while adjusted earnings were $1.61 per share.
DISH Network posted a GAAP loss of 27 cents per share, which was significantly behind the consensus estimate of 12 cents per share in earnings (although it may not be comparable), and revenue of $3.78 billion, which just edged out the consensus at $3.74 billion.
Wal-Mart shares slump after sales miss
Wal-Mart’s comparable store sales climbed 0.6%, marking the sixth consecutive quarter of growth on the back of positive traffic for the fifth quarter in a row. Comparable sales for the retailer’s Neighborhood Market segment grew 7% year over year as customer experience scores strengthened again on the back of heavy spending to boost those scores.
Management also cut their guidance for this year as they now expect sales to be roughly flat with last year rather than their previous guide for 3% to 4% growth in constant currency. Management said the change was due to impacts from store closures and continued currency headwinds caused by the U.S. dollar’s strength. They expect earnings of between $4 and $4.30 per share for the full year, compared to the consensus of $4.17 per share.
Wal-Mart also raised its dividend again, bringing it to $2 per share for the full year. The retailer’s stock slumped by as much as 4.43% to $63.20 per share in premarket trading this morning.
DISH Network swings to a loss
DISH said the $516 million FCC “auction expense” and a $123 million impairment charge for equipment weighed on its results. The satellite TV provider also had to surrender wireless spectrum licenses that weren’t eligible to receive small business discounts.
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