Market Overview

Wal-Mart Q3 Profit Beats Views, Shares Rise

Share:
Related WMT
7 Retailers To Play Favorable Q3 Weather
The 9 Hottest Toys For The 2017 Holidays, Courtesy Of Walmart
Retail Is Dead, Long Live Retail; 5 Stocks Near Buys: Investing Action Plan (Investor's Business Daily)

Shares of Wal-Mart Stores, Inc. (NYSE: WMT) gained over 2 percent in pre-market trading after the company reported better-than-expected earnings for the third quarter on Tuesday.

The Bentonville, Arkansas-based company posted quarterly net earnings of $3.3 billion, or $1.03 per share, compared to $3.71 billion, or $1.15 per share, in the year-ago period. The latest quarter earnings benefited by around $0.04 per share from an adjustment for certain leases.

Its total revenue slipped to $117.41 billion from $119 billion. Excluding the impact of foreign currency movements, Wal-Mart's total revenue climbed 2.8 percent to $122.4 billion. However, analysts were expecting earnings of $0.98 per share on revenue of $117.79 billion.

The average estimate among 116 Estimize users was for earnings of $0.98 per share and revenue of $117.59 billion.

Same-store sales at Walmart U.S. climbed 1.5 percent year-over-year, while same-store sales rose 0.4 percent at Sam's Club.

Its traffic increased 1.7 percent in the quarter.

During the quarter, Wal-Mart paid $1.6 billion in dividends and repurchased around 6 million shares for $437 million.

Doug McMillon, President and CEO, Wal-Mart Stores, Inc. said, "We are pleased with the continued sales growth in Walmart U.S. and in our international business. Strong traffic and our fifth consecutive quarter of positive comps in Walmart U.S. stores show we are taking the right steps to win with customers. Although we still have work to do, we are positioning for sustainable growth through investments in people and technology to deliver a seamless shopping experience at scale."

For the fourth quarter, Wal-Mart projects earnings of $1.40 to $1.55 per share, versus analysts' estimates of $1.42 per share. It expects U.S. same-store sales growth of 1 percent. The company narrowed its full-year earnings forecast to $4.50 to $4.65 per share, versus prior outlook of $4.40 to $4.70 per share.

Wal-Mart shares gained 2.57 percent to $59.36 in pre-market trading.

Posted-In: profitEarnings News Guidance

 

Related Articles (WMT)

View Comments and Join the Discussion!
Loading...
Loading...