Profit Falls at Walmart, but Beats Expectations
- Author: Zachary Reyes May 25, 2017,
May 25, 2017, 7:42
CHICAGO Wal-Mart Stores Inc on Thursday reported higher-than-expected quarterly sales at established us stores, as more customers visited the discount retailer and its e-commerce push boosted online purchases, sending its shares up 1.3 percent in early trade.
Wall Street expects Wal-Mart Stores Inc (NYSE: WMT) to report quarterly earnings at $0.96 per share on revenue of $117.74 billion before the opening bell.
Analysts were looking for revenues of $117.7 billion for the quarter.
CEO Doug McMillon, in a prerecorded conference call discussing results, said low-single-digit comparable sales in food and consumables during the quarter were the chain's best performance in more than three years, helped along by easing price deflation, which was offset by Walmart's own price investments. The company has moved faster combining physical and digital assets so shopping can be simpler and easier for our customers. "Our plan is graining traction".
US stocks are broadly higher in late-afternoon trading Thursday, putting the market on course to recoup some of the ground it lost a day earlier, when stocks had their biggest drop in eight months.
Still, despite the "choppy" retail environment, he said the quarter's results showed that Target was beginning to see some early results from its new strategic roadmap.
Even during the peak holiday season, Wal-Mart Stores could achieve e-commerce sales growth of 29 percent only while GMV jumped 36.1 percent in the fourth quarter.
"Wal-Mart is effectively competing in a tough retail environment, and given its size, scale, and leverage will be able to stay the course on the current strategy", Stifel analyst Mark S. Astrachan wrote in a note.
The world's largest retailer said that sales at established stores rose for the eleventh straight quarter, and customer traffic rose for the tenth quarter in a row. While general merchandise sales fell during the first quarter largely because of delays in tax-refund checks, Wal-Mart reported improved grocery sales.
Net sales at Walmart International were $27.1 billion, a decrease of 3.5 percent. "E-commerce is way ahead of where it was this time a year ago just in the short eight or nine months he's been running it". Wal-Mart Stores Inc. reports earnings, Thursday, May 18, 2017. Comp traffic grew 3 percent on a two-year stacked basis. (WMT) reported Thursday lower net profit in its first quarter with weak worldwide segment results. We are particularly pleased that Walmart is using discounting to encourage online shoppers to use more economical store pickup rather than delivery. "The acquisitions are helping us speed some things up". Additionally, the company also expects earnings per share in the range of $1.00 to $1.08 in the second quarter.
Wal-Mart Stores Inc. (WMT) has 3.05 Billion shares outstanding and 1.39 Billion shares were floated in market.
Let's have a look at some of the important valuation ratios of the Wal-Mart Stores, Inc.