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Walmart Delivers Solid 2011 Q2 Report

Posted on | August 16, 2011 | Comments Off on Walmart Delivers Solid 2011 Q2 Report

2Q profit rose 5.7 percent mostly via international strength. Profit was $3.8 billion or $1.09 a share compared to $.97 a share a year ago. Revenue was up 5.5% overall, but International revenue was up 16.2%. This is no surprise and this will absolutely be the trend over the coming years with nearly all growth coming from abroad.

The key metric for US sales is the comp stores figure which was flat when factoring in Sam’s Clubs. It was down .9% year over year when just looking at Walmart stores.

Walmart continues to warn that the US consumer is strained - this again is no surprise and will continue. I don’t expect major growth in US sales in the coming years, but I think Walmart will manage the US well while seeing robust growth overseas. It will be enough to deliver nice returns on the stock especially from current levels around $50/share.