Summary
Walmart Inc. reported financial results for the period ending July 31, 2014, showing modest revenue growth driven by increases in net sales across its U.S. and International segments, alongside contributions from Sam's Club. While total revenues saw a 2.8% increase year-over-year for the quarter, operating income experienced a slight decline of 0.5%, impacted by increased operating expenses as a percentage of net sales, particularly due to higher healthcare costs in the U.S. and price investments across segments. The company also noted a decrease in its effective income tax rate for the period. Despite the slight dip in operating income, Walmart continued to generate substantial operating cash flow and free cash flow, demonstrating its strong liquidity position. The company maintained a consistent dividend payout and continued its share repurchase program, albeit at a reduced pace compared to the prior year. Investors should note the ongoing legal and FCPA investigations, which are incurring significant expenses but for which the company cannot yet estimate a material adverse impact.
Financial Highlights
48 data points| Revenue | $120.13B |
| Cost of Revenue | $90.01B |
| Gross Profit | $30.11B |
| SG&A Expenses | $23.38B |
| Operating Income | $6.74B |
| Interest Expense | $509.00M |
| Net Income | $4.09B |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 9.69B |
| Shares Outstanding (Diluted) | 9.72B |
Key Highlights
- 1Consolidated net sales increased by 2.8% year-over-year for the three months ended July 31, 2014, reaching $119.3 billion.
- 2Operating income decreased slightly by 0.5% to $6.74 billion for the three months ended July 31, 2014, compared to the prior year period.
- 3Operating expenses increased by 3.3% for the quarter, leading to a decrease in operating income as a percentage of net sales.
- 4The company generated strong operating cash flow of $11.9 billion for the six months ended July 31, 2014.
- 5Free cash flow increased to $6.8 billion for the six months ended July 31, 2014, up from $5.2 billion in the prior year.
- 6Walmart repurchased $933 million in stock during the first six months of fiscal 2015, a significant decrease from $4.1 billion in the same period last year.
- 7The company is subject to ongoing FCPA investigations, which incurred $43 million in third-party expenses during the quarter.