Wal-Mart (WMT) Q4 Earnings, Revenues Beat on Strong Comps

Feb 22, 2017, 00:31
Wal-Mart (WMT) Q4 Earnings, Revenues Beat on Strong Comps

Despite shuttering dozens of stores to boost cash and streamline its operations, revenue dropped 4% to $8.5 billion in the fourth quarter of past year.

Revenue rose 1 per cent to $130.9-billion, with the depreciation of the Mexican peso to the USA dollar curbing growth.

However, the top- and bottom-line numbers aren't necessarily what has the market excited.

The retailer posted its third straight quarter of double-digit online growth, helping boost their holiday business.

The company said same-store sales rose 1.8 percent during the fourth quarter, topping Wall Street expectations.

The number of visitors to Canadian stores dropped 1.1 per cent while customers purchases' amounted to 1.3 per cent more than a year earlier, USA parent Wal-Mart Stores Inc. said.

The results reflect Wal-Mart Canada's push to step up its grocery and health and wellness offerings as it builds more supercentres with full supermarkets, putting more pressure on rivals while fighting off mighty Amazon.com Inc. and other low-priced e-commerce players.

Total U.S comparable sales for the quarter was 2.0 percent, compared to an increase of 0.1 percent.

The retail behemoth is investing billions to raise US store worker wages, lower prices and expand e-commerce sales to better compete with Amazon.com Inc.

F stock's price is now -7.99% down from its 52-week high and +15.47% up from its 52-week low. Walmart U.S. comps are seen rising between 1% and 1.5%, with Sam's comps excluding fuel up 1%.

Wal-Mart also on Tuesday announced a 2% dividend increase to $2.04 a share annually. Excluding certain items, earnings per share were $1.30. For trailing twelve months, EPS value for the stock is $4.61. The figure beat the Zacks Consensus Estimate of $485.1 billion by 0.16% and increased 0.8% year over year.

Consolidated net income attributable to the company for the fourth-quarter declined 17.9 percent to $3.76 billion from last year's $4.57 billion, with earnings per share decreasing to $1.22 from $1.43 in the prior year. The company's revenue for the quarter was up.8% compared to the same quarter a year ago. Q4 adjusted EPS of $1.30, vs. $1.49, is $0.01 above the Capital IQ consensus. The stock hit a record high of $90.97 in 2015 and is now trading near $71 in the pre-market.

News source CNBC noted that despite recording its largest domestic same-store sales increase in almost five years, revenue fell short of many expectations-in large part due to foreign exchange rates and food deflation. Institutional investors own 29.69% of the company's stock. 09, 2016, the great number of shares disposed came courtesy the 10% Owner; WALTON JIM C disposed a total of 2,100,000 shares at an average price of $71.44, amounting to approximately $150,024,000. ZUMZ and Genesco Inc.

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