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Wal-Mart Q3 Earnings Rise, Beating View; Forecast Boosted (WMT)
November 12th, 2009
Retail superpower Wal-Mart Stores, Inc. (WMT
) on Thursday said that its third quarter profit rose slightly from last year, beating expectations, and raised its full-year forecast, despite lower same-store sales.
The Bentonville, Arkansas-based company reported third quarter net income of $3.24 billion, or 84 cents per share, compared with $3.14 billion, or 80 cents per share, in the same quarter last year. Revenue rose 1% from last year, to $99.4 billion.
On average, Wall Street analysts expected a lower profit of 81 cents per share, albeit on slightly higher revenue of $99.9 billion.
Same-store sales fell by 0.4% in the period, however, marking the second consecutive quarter of comparable declines. Same-store sales are a key indicator of a retailer’s health, since they measure the performance of stores open at least one year. Looking ahead, Wal-Mart predicted fourth quarter same-store sales to decline
The company doesn’t expect that to pick up much in the fourth quarter, saying it anticipates a decline of 1 percent to up 1 percent.
Wal-Mart said it expects that earnings per share in the fourth quarter to be in the range of $1.08 and $1.12 per share. Analysts expect $1.12 per share for the period.
As a result, the company is raising its guidance for the full fiscal year to $3.57 to $3.61 per share, from $3.50 to $3.60 per share. Analysts expect $3.58 per share.
The Bottom Line
We had removed shares of WMT from our “recommended” list back last Oct.7, when the shares were trading at $57.90. The company has a dividend yield of 2.06%, based on last night’s closing stock price of $52.97. The stock has technical support in the $46 price area. If the shares can firm up, we see overhead resistance around the $54-$56 price range. We would remain on the sidelines for now.
Wal-Mart Stores, Inc. (WMT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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November 12th, 2009 at 9:14 am
[...] By Dividend.com Staff Retail superpower Wal-MartStores, Inc. (WMT) on Thursday said that its third quarterprofit rose slightly from last year, beating expectations, and raised its full-year forecast, despite lower same-store sales. …Read Original Story: Wal-Mart Q3 Earnings Rise, Beating View; Forecast Boosted (WMT) – Dividen… [...]
November 13th, 2009 at 6:15 am
Wal Mart is doing a good job even in this tough economic times.
Not many companies can do such a good job in this times.