EmailWal-Mart (WMT $69.10 -2.21) reported third quarter earnings of $1.08 per share, $0.01 better than the Capital IQ consensus of $1.07, while revenues rose 3.4% year/year to $113.93 billion versus the $114.03 bln consensus; FX hurt sales by approximately $1.7 billion. The company reported U.S. Walmart Q3 comparable store sales of +1.5%; the company guided for range of +1.0-3.0%; the company reports Sam's Club Q3 comparable store sales of +2.7%; the company guided for +3-5% (excluding fuel). "Sam's Club comp sales, while a solid 2.7 percent, fell short of our guidance. Business members in particular, continued to be pressured economically. Inflation was lower than last quarter and much less than a year ago. While lower costs are good for our members, deflation impacted comp sales more than expected. Sam's Club is stepping up price investment for the holidays, and we are well prepared for our members' gifting and entertaining needs." The company issued in-line guidance for Q4, sees EPS of $1.53-1.58 versus the $1.57 consensus. The company guided fiscal year 2013 EPS at upper half of previous range ($4.88-4.93 from $4.83-4.93 vs. $4.93 consensus); with Walmart U.S. Q4 comparable store sales of +1-3%.
The company also disclosed that it is also conducting a voluntary global review of its policies, practices and internal controls for FCPA compliance. The Company is engaged in strengthening its global anti-corruption compliance programs through appropriate remedial anti-corruption measures. In November 2011, the Company voluntarily disclosed that investigative activity to the DOJ and the SEC. Since the implementation of the global review and the enhanced anti-corruption compliance programs, the Audit Committee and the Company have identified or been made aware of additional allegations regarding potential violations of the FCPA. When such allegations are reported or identified, the Audit Committee and the Company, together with their third party advisors, conduct inquiries and when warranted based on those inquiries, open investigations. Inquiries or investigations regarding allegations of potential FCPA violations have been commenced in a number of foreign markets where we operate, including but not limited to Brazil, China and India. The Company has been informed by the DOJ and the SEC that it is also the subject of their respective investigations into possible violations of the FCPA. The Company is cooperating with the investigations by the DOJ and the SEC. A number of federal and local government agencies in Mexico have also initiated investigations of these matters. Walmex is cooperating with the Mexican governmental agencies conducting these investigations. Furthermore, lawsuits relating to the matters under investigation have been filed by several of the Company's shareholders against it, certain of its current directors, certain of its former directors, certain of its current and former officers and certain of Walmex's current and former officers.
