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Last Update: 21-Feb-13 07:51 ET
Wal Mart shares little changed following beat on earnings
Wal-Mart (WMT $69.58 +0.34) reported fourth quarter earnings of $1.67 per share, $0.10 better than the Capital IQ Consensus Estimate of $1.57; revenues rose 3.9% year/year to $127.92 billion versus the $127.76 bln consensus. WMT reports U.S. Q4 comparable store sales of +1.0%; co guided for range of +1.0-3.0% and reports Sam's Club Q4 comparable store sales of +2.3%; co guided for +1.5-3.5% (excluding fuel). During the 13-week period, the Walmart U.S. comp was driven by an increase in average ticket of 1.1 percent, and a traffic decline of 10 basis points. Q1 Guidance: Co issues in-line guidance for Q1, sees EPS of 1.11-1.16 vs. $1.18 Capital IQ Consensus Estimate. WMT sees U.S. Q1 comparable store sales FLAT and Sam's Club comparable store sales of 0-2% FY14 guidance: Co issues in-line guidance for FY14, sees EPS of 5.20-5.40 vs. $5.37 Capital IQ Consensus Estimate. Commentary: "We are confident that our low prices will continue to resonate, as families adjust to a reduced paycheck and increased gas prices," Simon said. "We see the underlying health of the Walmart U.S. business is sound, and sales trends are similar to what we've demonstrated in the last few quarters. However, February sales started slower than planned, due in large part, to the delay in income tax refunds. We began seeing increased tax refund check activity late last week in our stores, resulting in a more normalized weekly sales pattern for this time of the year. Due to the slower sales rate in the first few weeks of this year's first quarter, we are forecasting comp sales for the 13-week period from Jan. 26 to Apr. 26, 2013 to be around flat. We continue to monitor economic conditions that can impact our sales, such as rising fuel prices, changes in inflation and the payroll tax increase."
