Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Walmart Shares Fall As Forecast Could Miss Estimates

Thursday, November 17, 2016 5:57
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Retail superpower Wal-Mart Stores, Inc.(NYSE:WMT) Thursday morning posted mixed third quarter earnings and issued guidance that could fall short of expectations, sending its shares lower in early trading.

The Bentonville, AR-based company reported Q3 earnings per share (EPS) of $0.98, which was two cents better than Wall Street’s $0.96 estimate. Revenues edged 0.5% higher from last year to $117.18 billion, which fell short of analysts’ view of $117.86 billion.

Walmart noted that currency translation effects negatively impacted EPS by approximately $0.03 in the latest period.

The company noted that U.S. comparable store sales rose 1.2% in Q3, which was in-line with guidance for +1.0-1.5%. The increase was mostly driven by a traffic uptick of 0.7%. Neighborhood Market, which is Walmart’s grocery store concept, saw comps rise about 5.2%.

Looking ahead, WMT issued earnings guidance that could fall short of Wall Street estimates. For Q4, the company expects EPS to range from $1.18 to $1.33, while analysts are looking for $1.32. Q4 Walmart U.S. comps are expected to rise 1.0% to +1.5%, and Sam’s Club (excluding fuel) comparable sales are seen rising 1.0% to 1.5%.

For the full fiscal year 2017, Walmart forecast EPS of $4.20 to $4.35. Analysts are looking for earnings of $4.33 per share for the year, so there’s a good chance that WMT’s numbers will miss that view.

The company commented via press release:

“We had a solid third quarter. Our ecommerce growth accelerated, operations in the U.S. continued to strengthen and international delivered another solid performance. We are pleased that we can see real progress stemming from our strategic choices and we appreciate the great work by our associates. Yet, we are not satisfied. We will continue to change and pick up speed to reach our longer term aspirations. We’re positioned well for this important fourth quarter and wish everyone a happy, peaceful and prosperous holiday season.”

Walmart shares fell $2.04 (-2.86%) to $69.35 in premarket trading Thursday. Prior to today’s report, WMT had gained 16.46% year-to-date.

WMT-2016-11-17

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.