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Wal-Mart Slides, Free Cash Flow Fails To Cover Dividends And Buybacks

• http://www.zerohedge.com

Despite reporting strong earnings which beat on both the top and bottom line in today's most anticipated earnings report, Walmart stock is down 3%, sliding to the lowest level since late July after it provided full year EPS guidance whose midpoint was below Wall Street expectations.

First, here are WMT's otherwise respectable historical results.

Q2 adj. EPS $1.08, beating est. $1.07, on the top end of the $1.00- $1.08 range

Q2 revenue $123.4BN, beating est. $123.05b

Total U.S. comps. ex-fuel up 1.7%, in line with consensus est. of 1.7%

Wal-Mart U.S. comps. up 1.8%, est. up 1.8%; forecast up 1.5%-2.0% in Feb.

Wal-Mart U.S. traffic up 1.3% y/y, avg ticket up 0.5%

Wal-Mart U.S. E- commerce sales up 70 bps y/y, GMV up 67%

Sam's Club results were a little weaker, with comps of 1.2% missing expectations of 1.4% increase, as a result of the average ticket down 0.9% despite a 2.1% increase in traffic.

Sam's Club comps. ex- fuel up 1.2%, est. up 1.4% (Consensus Metrix); co. saw up 1%-1.5%

Sam's Club traffic up 2.1%, avg ticket down 0.9%

Meanwhile, as Bloomberg notes, Costco, Sam's Club main competitor, reported monthly comp. sales ahead of estimates in each of May, June, and July

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