Earnings Preview: Wal-Mart Stores' EPS, Revenue Expected to Rise

Wal-Mart Stores (NYSE: WMT) releases its next round of earnings this Tuesday, August 16, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of $1.08/share and revenues of $108.26 billion. Wal-Mart Stores' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 97 cents/share on revenues of $103.73 billion. We'll know on Tuesday whether Wal-Mart Stores has managed the estimated 11.3% increase in EPS and 4.4% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Wal-Mart Stores were trading at $48.41 as of August 10, 2011. Shares are down 8.3% year to date. For a full 12 months, the return has declined by 7.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Wal-Mart Stores is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Wal-Mart Stores' peers.

• Amazon.com (NASDAQ: AMZN): Moderate Buy with a $0.38 recent quarter EPS
• BJ's Wholesale Club (NYSE: BJ): Hold with a $0.63 recent quarter EPS
• Costco Wholesale (NASDAQ: COST): Hold with a $0.80 recent quarter EPS
• Dollar General (NYSE: DG): Moderate Buy with a $0.48 recent quarter EPS

Wal-Mart Stores is in the retail-supermarket industry, which has experienced price/earnings growth of 1.1%.

Finally, a description of the company's main areas of operation: Wal-Mart Stores operates Walmart discount stores, supercenters, Neighborhood Markets and Sam's Club.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Wal-Mart Stores earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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