MKM Partners Releases Pre-Earnings Coverage On Wal-Mart

In a report released Monday, MKM Partners analyst Patrick McKeever released an earnings preview for for Wal-Mart Stores (NYSE: WMT) Q2 2014.

Analysts at MKM predict Wal-Mart Q2 results to come in line with expectations based on the same thesis of lagging traffic, investment allocation in its e-commerce segment and higher healthcare costs. The MKM note stated guidance of relatively flat same-store sales for Wal-Mart and Sam's Club, making minimal improvement from its Q1 2014 comps of 0.01 percent.

McKeever predicts a 20 basis point decrease in consolidated operating margin due to slightly higher commodity costs, as well as e-commerce and healthcare expenses.