The biggest retailer in the world, Wal-Mart Stores Inc., reported its earnings over the third fiscal quarter, which came above analysts projections, due to the fact that the companys same-store sales on its domestic market increased for the first time in almost two financial years.
The Chief Executive officer of the company, Doug McMillon, said in a news release, cited by the Wall Street Journal: “We have some things in our favor this fourth quarter, including lower fuel prices in the U.S. and other key markets, and we’re set to deliver for customers during this time.”
According to Wal-Marts statement, its earnings reached $1.15 per share over the third financial quarter. This result outpaced the analysts projections, pointing to $1.12 per share in earnings. The companys comparable-store sales rose 0.5% during the period.
The profit over the third financial quarter contracted 0.7% from $3.74 billion, or $1.14 a share, a year earlier, to $3.71 billion. Wal-Marts total revenue increased 2.9% to $119 billion over the three months ended on October 31st. In addition, the company said the revenue of its stores located in its domestic market increased 3.4% to $70 billion. Wal-Marts international sales rose 1.7% to reach $33.7 billion.
As reported by the Wall Street Journal, the Chief Financial Officer of Wal-Mart, Charles Holler, said: “Our earnings per share guidance assumes several important factors, including the economic conditions in several of our largest markets, and a highly promotional holiday season.”
Despite that sales were brought back to life, Wal-Mart reduced its annual earnings projection from $5.15 a share to the range of $4.93 to $5.02 per share. The new forecast includes a 3-cent impact from the closure of under-performing stores on the territory of Japan. This is the second time when Wal-Mart cuts its projection within the current fiscal year.
Wal-Mart Stores Inc. was up 4.72% to close at $82.94 per share yesterday, marking a one-year increase of 5.12%. The company is valued at $255.22 billion. In Frankfurt, the companys shares traded at €66.390, up 1.00% as of 8:20 GMT. According to CNN Money, the 21 analysts offering 12-month price forecasts for Wal-Mart Stores Inc. have a median target of $80.00, with a high estimate of $87.00 and a low estimate of $66.00. The median estimate represents a +1.01% increase from the last price of $79.20.
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