Walmart reports earnings on Thursday. The consensus estimate is $1.13, and there’s a pretty good chance, IMHO, that they are going to miss. Even if they hit the number, traders are likely to dump WMT shares if the company lowers its guidance for the rest of the year. Of course, WMT shares could rise if they had a blowout quarter (their fiscal first quarter of 2019), but why would that be the case when the company’s profit margin is shrinking? Once again, there will certainly be an increase in EPS over the course of the year thanks to tax cuts and share buybacks, but why would anyone base a buy decision on that when both are one-time only EPS gains that don’t translate to any sustained growth. It’s hard to get excited about a 10% rise in EPS that everyone knows is coming when everyone also knows it represents nothing but juked numbers.
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