Wal-Mart's Forecast Disappoints, Leaves Questions
February 18, 2010 9:32 AM
Wal-Mart Stores (NYSE: WMT) the world’s largest retailer reported earnings for the 4Q. Earnings for the retail giant were $1.17, estimates were at $1.12. Wal-Mart earned $0.96 in the 4Q last year. Revenues came in under analysts’ expectations at $112.8 billion, an increase of 4.6% from 4Q last year. Wal-Marts full year EPS was $3.72. The stock is trading down 1.50% in premarket trading.
Earnings guidance for Wal-Mart is given for fiscal year 2011 EPS to be between $3.90 to $4.00. Wal-Mart guided for an EPS of $0.81 to $0.85 for the first quarter, which is in the lower end the analysts were looking for. I believe this is what is knocking the stock down, as analysts’ are expecting Wal-Mart to earn $0.85 for the first quarter.
It was reported on CNBC that same store sales appeared weak. The hosts on Squawk Box were not sure if this was due to reduced sales in the world economy, or if people were starting to move up to high end retail.
