Wal-Mart's Stock Falls After Overall Sales Beat, But Sam's Club Disappoints

Wal-Mart Stores Inc. reported second-quarter net income of $2.90 billion, or 96 cents per share, down from $3.78 billion, or $1.21 per share, for the same period last year. Adjusted EPS was $1.08, ahead of the FactSet $1.07 consensus. Revenue was $123.4 billion, up from $120.9 billion and ahead of the $122.8 billion. Same-store sales were up 1.8%, with traffic growing 1.3% for the quarter. E-commerce sales at Walmart U.S. grew 60%. Sam's Club sales were $14.9 billion, up from $14.5 billion last year, but below the FactSet consensus of $14.8 billion. Same-store sales, excluding fuel, were up 1.2%. Wal-Mart sees full year EPS of $4.18 to $4.28, and adjusted EPS of $4.30 to $4.40. The company sees third-quarter EPS of 90 cents to 98 cents. The FactSet consensus is for full-year earnings of $4.36 and third-quarter EPS of 97 cents. Wal-Mart shares are down 1.8% in Thursday premarket trading, but up 17.2% for the year so far. The S&P 500 index is up 10.2% for 2017 to date. The Dow Jones Industrial Average is up 11.5% for 2017 so far.