Wal-Mart in the red after missing Q4 estimates

Watch for falling share prices!

Shares of Wal-Mart were in the red on Tuesday after the world’s largest retailer reported Q4 results that missed analyst estimates as it continued to focus on low prices. Net income fell 15% to $5.16 billion or $1.50 per shares. Excluding some items, earnings came in at $1.44 per share while analysts had forecast $1.45. Revenue increased to $123.2 billion, also short of the $124.1 billion consensus while gross margin fell 40 bps to 24.3%.

The company has been focused on cost cuts to keep prices low as it still sees consumers staying cautious with their spending. That said, CEO Mike Duke said its “core U.S. Wal-Mart business is back on track” and highlighted a second consecutive quarter of same-store sales growth.

Looking ahead, the company forecast EPS in a range of $1.01-1.06 in the current quarter and $4.72-4.92 for F13. Analysts had forecast $1.05 and $4.90, respectively. Management expects same-store sales to be flat to up 2% at Wal-Mart and up 3% to 5% at Sam’s Club while analysts are forecasting 1.8% growth at Wal-Mart.

Wal-Mart (WMT : NYSE : US$59.93), Net Change: -2.55, % Change: -4.08%, Volume: 22,133,733

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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