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Two Ways To Play: Walmart's Earnings Misstep


Strengthen your portfolio in good times and bad.

Walmart Sales Miss Estimates

Walmart (WMT) reported results for its fiscal fourth quarter. The world's largest retailer said earnings came in at $1.17 a share, 5 cents better than Wall Street estimates. Revenues rose 4.5% year-over-year to $113.65 bln, below expectations of $114.36 bln. Guidance for the first quarter was inline; it estimates EPS in the range of $0.81-0.85 vs. $0.85 consensus. But US comps fell in Q4 and it reported declining gross margins of 24.9% compared to $25.76% last quarter. Shares are down over 2% in the premarket.

For more on analyzing retail companies, be sure to check out Kristin Graham's column, Why Abercrombie's Future Doesn't Look Pretty.

From the Bull Pen: Walmart pulling back towards $52.50 support might be a buying opportunity. Longer term investors might also be attracted to its 2% dividend. Also consider American Eagle (AEO) which has made a series of higher lows. Short term traders can set a tight sell stop below $15.50.

From the Bear Cave: The retail ETF (RTH) is nearing massive resistance near $95. Bears looking for a downside play can consider using this stock with a buy stop above that level.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei +0.28%, India -0.62, Hang Seng -0.54%, Shanghai (Closed), and Taiwan (Closed), Australia's ASX 200 -0.28%.

Aross the pond, we see the FTSE +0.50%, CAC +0.27%, DAX +0.28%

As of 8:10 AM EST, S&P Futures are trading -1.75 to 1097.75. Nasdaq futures are +1.75 to 1813.50.

A Look at Commodities

Over in commodities, crude oil is -0.30 to 77.43 while gold is -13.60 to 1106.50 this morning. Silver is -0.198 to 15.900 and copper -0.0225 to 3.2170.

The dollar Index is +0.1850 to 80.6600.

On the Radar


08:30 Initial Claims
08:30 Continuing Claims
08:30 Core PPI
08:30 PPI
10:00 Leading Indicators
10:00 Philadelphia Fed

Click here for the full trading radar.

Good luck today!
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No positions in stocks mentioned.

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