Wal-Mart Stores Inc. reported its results for the fourth quarter. Wal-Mart Stores operates Walmart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States.
Investing Insights: Warren Buffett Trashes Gold, But What About Silver?
Wal-Mart Stores Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Wal-Mart Stores Inc. fell to $5.16 billion ($1.50 per share) vs. $6.06 billion ($1.70 per share) a year earlier. This is a decline of 14.7% from the year-earlier quarter.
Revenue: Rose 5.9% to $123.17 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Wal-Mart Stores Inc. reported adjusted net income of $1.51 per share. By that measure, the company beat the mean estimate of $1.45 per share. Analysts were expecting revenue of $124.25 billion.
Quoting Management: “We are pleased with Walmart’s earnings performance for both the fourth quarter and the full year,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Today, every segment of our business is stronger than it was a year ago, and we’re in a great position for fiscal year 2013.” Duke recognized the progress Walmart U.S. made during the quarter. “Walmart U.S. reported positive comps of 1.5 percent for the fourth quarter including positive comp traffic. This is now the second consecutive quarter of positive comp sales,” he said. “Our price leadership is making a difference across the United States, as many families are settling into a new normal. Core customers remain cautious about their finances, and they rely on Walmart’s EDLP promise to help them manage through today’s economic challenges.”
Key Stats:
Gross margin shrank 0.3 percentage point to 24.8%. The contraction appeared to be driven by increased costs, which rose 6.2% from the year earlier quarter while revenue rose 5.9%.
Revenue has increased for four quarters in a row. Revenue increased 8.1% to $110.23 billion in the third quarter. The figure rose 5.4% in the second quarter from the year earlier and climbed 4.3% in the first quarter from the year-ago quarter.
The company’s net income has fallen in each of the last two quarters. In the third quarter, net income fell 2.9% from the year-earlier quarter.
The company beat estimates last quarter after meeting expectations in the third quarter with net income of 97 cents per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.06 a share to $1.05 over the last seven days. For the fiscal year, the average estimate has been unchanged at $4.48 a share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories:
Food Inflation Hits Consumers in the Wallet and Stomach>>
Facebook Could Make $1.2 Billion from Mobile Advertising in Major Markets>>
Record High Gold Prices Fail to Curb Global Demand>>
To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
There are no comments yet