This requires deep thinking and today Walmart missed and softened outlook. Any smart thoughts?
2 replies (most recent on top)
Easy....they intentionally underestimated earnings per share and sales growth (which was still negative and even more so for the first few weeks of the current quarter), plus, they admitted to spending almost $700 million of the $1 billion they borrowed (so far) to reduce the number of outstanding shares. If you reduce the denominator, further "goosing" the earnings per share ratio.
They low balled the estimate and jacked up some prices due to "el nino" affecting west coast produce at the peak of holiday season...