Wal-Mart Stores Inc. (NYSE: WMT) released its Q1 earnings this morning, and we were all quite disappointed in the failure of the retailer to have a live conference call with analysts.
Using the same-store figures for the first three months of this year and year-ago official sales numbers, it wasn't hard to guess what Wal-Mart's quarter was going to be like, but the full and actual results are here (PDF link). Perhaps the company didn't want to field questions about its disappointing second quarter forecast.
In a nutty move, the retailer made a pre-recorded call available just a few minutes ago with scripted (and gleeful sounding) executive statements.
It is fiscally irresponsible for a retailer like Wal-Mart to release a pre-recorded call to cover Q1 earnings without taking questions from shareholders and industry analysts, so I'm a bit confused here on why the company chose to do this. Any company can make financials sound great, but it's the hard questions that get answered (or danced around) that beat below the facts and draw out the insight investors really need -- especially Wal-Mart investors who need information on the company they own.
Now that my tirade is over (heh), you can hear the Q1 pre-recorded conference call here and view the results in full here.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
5-15-2007 @ 10:47AM
DDix said...
Didn't even read your entire blog. You wouldn't like Wal-Mart if they kissed you.
5-15-2007 @ 10:52AM
Brian White said...
Well, I beg to differ. Any public company has a *duty* to respond to the marketplace and shareholders every quarter, period. A simple, figure-based, pre-recorded call is simply not enough these days. Wal-Mart did not do this for the Q1 period, and WMT shareholders need better.
5-15-2007 @ 11:14AM
mark wessler said...
The Annual Shareholders Meeting and Media Day are just a few weeks away. Take your questions there. Your opinion of *duty* and * fiscally irresponsible* and SEC legal requirements are not always in agreement. Do you post your blogging tirade on every company that has a pre-recorded call for quarterly results?
Media call Wal-mart executives everyday. Pick up the phone and dial.
btw....Pay attention to the monthly releases, and you'll already know the quarter strenghts and areas of opportunities they are addressing.
pss.. a blogger isn't an analyst
5-15-2007 @ 11:24AM
Brian said...
Nope - still do not agree here. The Q&A I was referring to was from the analyst industry (not myself). Those who own WMT need those deep-digging questions every quarter. WMT investors can call Wal-Mart, that is true. Do they know how to ask the tough questions? Questionable (they should be able to).
And yes, I will question any public company that is not responsible enough to engage the analyst and media community *proactively* at the conclusion of every quarter. It's our duty to cover that and bring the news to the WMT investor (from analyst questions), but it's not possible if the company in question can't even hold a conference to take direct questions in a centralized setting, in real-time.
Thank you for your comments.
5-15-2007 @ 11:42AM
Anonymous said...
Wal-Mart has conducted its quarterly earnings releases this way for years. They are always pre-recorded and never include Q&A.
Perhaps it would have been appropriate to change their habits given recent results, but this was nothing new or unusual for them.