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Actionable news in WMT: WAL-MART STORES Inc,

Forget Share Buybacks, Wal-Mart Delivers Extremely Disappointing Guidance

Wal-Mart Stores Inc. (NYSE: WMT) has just seen its shares tank due to its guidance at the investor day presentation. The driving force was a serious drop in earnings per share forecast for 2016 (its fiscal 2017). The news has caught main street investors and Wall Street analysts totally off guard. There is a big share buyback here, but it just is not enough to offset guidance that is this horrible. The news is so much less than what was expected that it created a spillover into retail stocks and was a big drag on the Dow Jones Industrial Average.

Wal-Mart warned that a stronger than anticipated impact from currency exchange rate fluctuations will now make its net sales growth for the current fiscal year be relatively flat. That figure would be growth of approximately 3% without the currencies. For a comparison to past guidance, Wal-Mart indicated earlier this year that net sales growth would likely be between 1% and 2%.

The company’s new sales growth targets over the next three years are for growth of 3% to 4% annually, ultimately adding $45...