Walmart Will Continue To Trend Higher After Results

In the last three months Walmart (WMT) has moved higher by nearly 7%, and I had expected this move in an article that I wrote earlier on GuruFocus. I was of the opinion that the nearing of the festive season will take the stock higher as the consumer confidence in U.S. is currently at its highest levels since the financial crisis.

With Walmart reporting good set of third-quarter numbers, I remain positive on the stock for the coming two quarters as well, and I believe that the stock will continue to trend higher as it has done in the last three months. The next two quarters sales will be driven by the positive impact of the festive season; it is a good time to remain invested in the stock.

Coming to the third-quarter results that were announced today, Walmart reported an increase in revenue of 2.8% for the third quarter o 2014 to $118 billion in net sales. The company’s diluted EPS came at $1.15 per share, which was within the company’s guidance range of $1.1 to $1.2 per share. Therefore, I believe that the numbers are largely in line with market expectations and an increase in U.S. comparable sales by 0.5% is a positive. Walmart is expected to move higher on the results day as indicated by the pre-opening levels.

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