“Our strategy is working as we delivered an eight consecutive quarter of positive comps”, said Doug McMillon, president and CEO, Wal-Mart Stores.
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Walmart said comparable sales for its business in the USA would be up by 1.5% during its ongoing quarter. Revenue from overseas operations declined 6.6% year-over-year (YoY) to $28 billion.
According to RBC Capital Marketss price target of 76 on the company’s stock this indicates the broker now believes there is an increase of 2.29% from Wal-Mart Stores Inc’s current price of 74.3.
Net income attributable to Wal-Mart rose to $3.77-billion from $3.48-billion.
Revenue rose 0.5 percent to $120.9 billion.
The retailer’s operational efficiency, however, helped it control expenses as cost of sales fell 0.6% YoY to $89 billion. The median estimate represents a -2.59% increase from the last price. Buckingham Research analyst John Zolidis also praised the sales momentum, although he also points to the drop in operating income.
Financial Analysts Projected the expected the Higher, Lower and Mean Estimated EPS targets for This Fiscal Year.
Against that backdrop, Wal-Mart gave a rosier outlook. Changing spending pattern and consumer behavior in the United States is likely to support the retailer’s move to expand its web presence.
At the start of this year, Walmart shuttered dozens of low-performing stores, and last week the retailer announced that it would be buying Jet.com, a move created to help the company become as big a player in online shopping as it is in brick and mortar retail.
Walmart recently announced it was buying Jet.com for $3 billion, a deal that would boost its ecommerce business to take on Amazon.
Globally, on a constant currency basis, e-commerce sales and GMV increased 11.8% and 13.0%, respectively, representing an acceleration from the first quarter. The Firm operates through three divisions: Walmart U.S., Walmart International and Sam’s Club. It will incorporate some of Jet.com’s technology that lowers prices in real time.
Wal-Mart has launched a flurry of changes, from making sure vegetables look good to cleaning up the stores to being sharper on keeping prices low.
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Also, the Bentonville, AZ-based retail giant is scheduled to report earnings for the fiscal 2017 second quarter before Thursday’s market open. Wal-Mart expects earnings per share to come in the $4.15-4.35 range. This ratio, which is also called as the P/E ratio evaluates the company on relative expense factor. “We’re more pleased this quarter but continue to press and keep growing the business at an accelerated pace”. That contrasts with the $753 million ($1.18 per share) for the same period previous year, when sales were $17.43 billion.
