Wal-Mart Posts Better-than-Expected Earnings
- Author: Zachary Reyes Feb 22, 2017,
Feb 22, 2017, 11:07
The stock witnessed 2.59% gains, -2.13% declines and -5.97% declines for the 1-month, 3-month and 6-month period, respectively. Walmart customers also responded positively to promotions such as the company offering free two-day shipping on Walmart.com purchases of $35 or higher.
"Our global business is consistently delivering solid sales growth in constant currency, and Sam's Club posted its best comp sales growth of the year", commented Doug McMillon, president and CEO of Wal-Mart Stores, Inc. "They are investing tens of billions into their internet operations while cutting back to near zero store growth".
As online and physical sales are further intertwined and retailers increasingly credit online sales to in-store employees, "interconnected retail" may look to be a new industry buzzword. Piershale Financial Group Inc. now owns 1,612 shares of the retailer's stock valued at $116,000 after buying an additional 5 shares during the last quarter. But Wal-Mart's results show that its aggressive efforts are helping.
Several analysts have released their opinion on Wal-Mart Stores, Inc. (NYSE:WMT) opened at 69.37 on Monday. The highest analyst price target is $90.00, which implies a rally of 70 percent. The company raised its quarterly dividend to $0.51 per share from $0.50 per share. And last month, it acquired ShoeBuy, and announced a free two-day shipping program on some 2 million items. Wal-Mart Stores had a net margin of 2.98% and a return on equity of 17.71%. The company had revenue of $129.75 billion for the quarter, compared to analyst estimates of $130.22 billion. That is compared with the $1.49 in EPS it reported during the same period a year ago.
For the full fiscal year 2018, Walmart expects EPS of $4.20 to $4.40, in-line with analysts' view of $4.32.
This piece of content was first reported by The Cerbat Gem and is the property of of The Cerbat Gem. If you are accessing this report on another domain, it was illegally copied and reposted in violation of US & global copyright & trademark law. According to a research note disclosed on Sep 23, 2016, analysts at Barclays have upped their rating on these shares from Equal Weight to Overweight.
Besides melding its online and store businesses so shoppers can jump back and forth, Wal-Mart is has launched changes created to make its stores cleaner and its customer service friendlier and faster.
The latest Insider trade was made on 6 Feb 2017 where Biggs (M Brett) Officer did a transaction type "Sell" in which 298 shares were traded at a price of $66.4. John T. Walton is one of the biggest insider owners in Wal-Mart Stores, Inc. Barclays PLC restated an "overweight" rating and issued a $82.00 price objective on shares of Wal-Mart Stores in a report on Sunday, November 13th. The company has a market capitalization of $220.69 billion, a P/E ratio of 15.58 and a beta of 0.09.
Investors welcomed the company's earnings report, driving shares up 2.4% in pre-market trading to $71.