Same-store sales were positive for the fifth consecutive quarter.
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Net profit attributable to Wal-Mart fell to US$3.304 billion, or US$1.03 per share, in the third quarter ended on Oct 31 from US$3.711 billion, or US$1.15 per share, a year earlier. The latest quarter earnings benefited by around $0.04 per share from an adjustment for certain leases.
Its total revenue slipped to $117.41 billion from $119 billion.
The average estimate among 116 Estimize users was for earnings of $0.98 per share and revenue of $117.59 billion.
Walmart’s biggest division for namesake U.S. stores saw revenues edge higher behind a 1.5 percent gain in comparable store sales. This figure is a key gauge of a retailer’s health because it excludes results from stores recently opened or closed.
Its traffic increased 1.7 percent in the quarter.
Doug McMillon, President and CEO, Wal-Mart Stores, Inc. said, “We are pleased with the continued sales growth in Walmart USA and in our worldwide business”. Northcoast Research upgraded shares of Wal-Mart Stores from a “neutral” rating to a “buy” rating and set a $70.00 price objective for the company in a research report on Friday.
We believe Wal-Mart has the financial wherewithal and time horizon necessary to execute its 3-year plan, including the announced $1.5bn labor investment in 2016 and price investments in the next three years (2017-18 focused).
Wal-Mart shares have decreased 33 percent since the beginning of the year, while the Standard & Poor’s 500 index has stayed almost flat.
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Sales in Walmart’s global division dropped 11.4 percent, while the Sam’s Club chain saw a 2.2 percent decline in sales.
