Wal-Marts third-quarter earnings, reported on Thursday, exceeded market expectations, as comparable store sales in the United States registered their strongest growth rate since 2009, regardless of sluggish demand and fierce competition from on-line sellers.
Wal-Mart shares closed higher for the seventh time in the past eight trading sessions on Thursday. It has also been the sharpest daily surge in more than seven years. The stock went up 10.90% ($9.79) to $99.62, after touching an intraday high at $99.64 and also a fresh all-time high.
In the week ended on November 12th the shares of the retail chain added 1.38% to their market value compared to a week ago, which marked a sixth consecutive period of gains.
The stock has extended its advance to 14.10% so far during the current month, following an 11.74% surge in October. The latter has been a second consecutive monthly gain and also the largest one since November 2014.
For the entire past year, Wal-Mart shares gained 12.76%. The stock has risen another 44.13% so far in 2017.
Wal-Marts total revenue went up 4.2% to $123.18 billion during the third quarter ended on October 31st compared to the same period a year ago. In comparison, analysts on average had expected $121 billion in revenue.
Comparable store sales in the US, excluding fuel, were reported to have increased 2.7% during the latest fiscal quarter, following a 1.2% growth during the same period a year earlier. The median analyst estimate had pointed to a 1.8% growth.
Total comparable sales at US stores rose 3% during the third quarter, after a 1.1% growth during the same period a year ago.
Wal-Mart said that hurricane-related sales had contributed 30 to 50 basis points to its total comparable sales due to higher consumer demand for food, grocery items and building materials during the quarter.
At the same time, the retailers sales on-line surged 50% during the latest quarter, almost a year after the acquisition of Jet.com. That followed another 60% increase in the preceding three-month period.
“Market share in the critical food category continues to grow as the expansion of its buy-online/pick-up in store capability is driving increased sales, and the focus on improving working capital continues”, Charlie OShea, Moodys retail analyst, wrote in a client note, cited by Reuters.
“As usual, we expect Walmart to largely set the tone on multiple fronts and in multiple categories for the Holiday season”, he added.
Wal-Marts operating income shrank 6.9% year-on-year to $4.76 billion during the quarter ended on October 31st, while its operating margins decreased to 3.9% from 4.4% in the year-ago quarter.
On the other hand, the retailers earnings per share, excluding special items, were reported at $1.00 during the fiscal third quarter, which outstripped a consensus of analyst estimates ($0.97 per share).
Meanwhile, Wal-Mart said it expected strong results during the holiday quarter, which urged it to revise up its earnings forecast for the fiscal 2017. The company now projects to earn between $4.38 and $4.46 per share for the full year, compared with a prior forecast of $4.30-$4.40 per share.
According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Wal-Mart’s stock price, have a median target of $90.00, with a high estimate of $100.00 and a low estimate of $61.00. The median estimate is a 9.66% decrease compared to the closing price of $99.62 on November 16th.
The same media also reported that 15 out of 33 surveyed investment analysts had rated Wal-Mart Stores’ stock as “Hold”, while 14 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Wal-Mart stock are presented as follows:
R1 – $100.07
R2 – $100.52
R3 (Range Resistance – Sell) – $100.96
R4 (Long Breakout) – $102.31
R5 (Breakout Target 1) – $103.88
R6 (Breakout Target 2) – $104.76
S1 – $99.17
S2 – $98.72
S3 (Range Support – Buy) – $98.28
S4 (Short Breakout) – $96.93
S5 (Breakout Target 1) – $95.36
S6 (Breakout Target 2) – $94.48
By using the traditional method of calculation, the weekly levels of importance for Wal-Mart Stores Inc (WMT) are presented as follows:
Central Pivot Point – $90.31
R1 – $92.30
R2 – $93.69
R3 – $95.68
R4 – $97.68
S1 – $88.92
S2 – $86.93
S3 – $85.54
S4 – $84.16
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
