The retailer now expects to earn between $4.15 and $4.35 a share, compared to its prior estimate of $4 to $4.30 a share. That compares with the $3.48 billion in earnings ( $1.08 per share) on $20.23 billion in sales for the corresponding three-month period in 2015, which means the company had a slight 0.5 percent gain in sales and an 8.6 percent gain in net income.
Advertisement
The average true range of Wal-Mart Stores Inc.’s (WMT) is recorded at 0.85 and the relative strength index of the stock stands 51.15. Though the company reported higher sales at Wal-Mart U.S., a drop in sales at the worldwide business and Sam’s Club resulted in the year-over-year fall in earnings.
Looking ahead, for the third quarter, the company expects earnings per share of $0.90 to $1. That deal came just weeks after Wal-Mart WMT, -0.74% announced a deal with JD.com Inc.
The Commerce Department on Tuesday reported that e-commerce sales in the second quarter rose 15.8% year over year to a seasonally adjusted $97.3 billion, the highest growth rate in four years.
Same-store sales tumbled 7.5 percent, excluding gasoline, as the grocer continued to lose ground to discounters and its main competitors. Buckingham Research analyst John Zolidis also praised the sales momentum, although he also points to the drop in operating income. The chain raised its full-year outlook in the wake of its strong performance. This includes a gain of $535 million from the sale of Yihaodian. Stripping out the impact of currency, revenue would have risen 2.8% to $123.6 billion.
Total revenue was $120.9 billion, an increase of 0.5%. Wal-Mart Stores makes up approx 0.59% of Greatmark Investment Partners’s portfolio.Bremer Trust National Association reduced its stake in WMT by selling 78 shares or 0.58% in the most recent quarter. This ratio, which is also called as the P/E ratio evaluates the company on relative expense factor. “Earlier this year we launched a test of Scan and Go, a mobile checkout and payment solution, which lets members skip the checkout line”.
“We are seeing a steady improvement in the USA business, and it is responding favorably to the changes we are making”, he said.
During the third quarter, Wal-Mart expects to earn between 90 cents and $1 a share, with comparable sales in its US division rising between 1 percent and 1.5 percent.
Advertisement
It’s been a stunningly quick turnaround for Walmart, which only last year warned of slowing sales growth and also said that higher wages for its workers and investments in its e-commerce operations would put a lid on earnings growth for a few years. Stronger sales at Wal-Mart U.S. offset weaker results from its worldwide operations, which suffered from currency headwinds, while Sam’s Club also saw weakness.
