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Walmart Beats, Best Buy Disappoints

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Walmart Beats, Best Buy Disappoints
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Two big-box retailers, Wal-Mart Stores Inc (NYSE: WMT) and Best Buy Co Inc (NYSE: BBY), reported Thursday their respective earnings results, which could have implications beyond the retail sector, particularly after Wall Street punished Target Corporation (NYSE: TGT) Wednesday.

Walmart

  • Walmart earned $1.00 per share on revenue of $123.2 billion in the third quarter; Wall Street analysts were expecting the company to earn 97 cents per share on revenue of $121 billion.
  • Operating income fell from $5.119 billion a year ago to $4.764 billion
  • U.S. comp sales rose 2.7 percent while comp traffic rose 1.5 percent.
  • Online net sales and GMV rose 50 percent and 54 percent, respectively.
  • Free cash flow totaled $10.152 billion in the quarter.
  • Walmart returned $3.735 billion to shareholders through dividends and share repurchases.
  • Management revised its fiscal 2018 EPS guidance from a range of $4.30-$4.40 to a new range of $4.38-$4.46.

Shares of Walmart gained more than 4 percent to $93.86, which is above the 52-week high of $91.98.

Best Buy

  • Best Buy earned 78 cents per share in the third quarter on revenue of $9.32 billion; Wall Street analysts were expecting the company to earn 78 cents per share on revenue of $9.36 billion.
  • Enterprise comparable sales rose 4.4 percent in the quarter, marking an acceleration from 1.8 percent a year ago.
  • Domestic comparable online sales rose 22.3 percent.
  • Operating income rose from $312 million a year ago to $350 million.
  • Management updated its fiscal 2018 enterprise sales growth from around 4 percent to a range of 4-4.8 percent.
  • Management also guided its fourth quarter EPS to a range of $1.89-$1.99 versus expectations of $2.03 per share.

Shares of Best Buy were trading lower by around 2 percent at $56.20.

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Posted-In: retail earnings retailersEarnings News Guidance Best of Benzinga

 

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