Wal-Mart tops profit forecasts
NEW YORK: Walmart reported improved customer traffic and an uptick in a key sales figure as it topped earnings expectations in the third quarter, even as a stronger dollar pressured its performance overseas. The world’s largest retailer also forecast a fourth-quarter earnings range that largely exceeds analyst expectations and narrowed its full-year outlook after cutting it in August. Its shares edged up more than 2 percent in premarket trading yesterday. Wal-Mart’s net income fell 11 percent to $3.3 billion in the quarter ended Oct 31, but its earnings per share of $1.03 per share topped Wall Street expectations.
The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 97 cents per share. Revenue slipped to $117.42 billion from $119 billion. On a constant currency basis, revenue totaled $122.4 billion. Nine analysts surveyed by Zacks expected $117.82 billion. The retailer has been pressured on a number of fronts so far this year. A strong U.S. dollar has affected results. The company is also facing increasing competition from Amazon.com and dollar stores, and its profits has been squeezed by pay raises for workers and efforts to improve its stores.
Sales at US stores open at least a year rose 1.5 percent in the third quarter, the fifth straight quarterly increase. This figure is a key gauge of a retailer’s health because it excludes results from stores recently opened or closed. Traffic climbed 1.7 percent. Wal-Mart Stores Inc.’s international segment reported net sales dropped 11 percent to $29.81 billion. Net sales were $34.7 billion on a constant currency basis. For US stores, quarterly net sales gained nearly 4 percent to $72.71 billion. —AP