Walmart beats profit forecasts
NEW YORK - Walmart (WMT) reported improved customer traffic and an uptick in a key sales figure during the third quarter, even as a stronger dollar pressured its performance overseas.
Its shares edged up more than 2 percent in premarket trading Tuesday.
For the three months ended Oct. 31, the world's biggest retailer earned $3.3 billion, or $1.03 per share. A year earlier the Bentonville, Arkansas-based company earned $3.71 billion, or $1.15 per share.
The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 97 cents per share.
Revenue slipped to $117.42 billion from $119 billion. On a constant currency basis, revenue totaled $122.4 billion. Nine analysts surveyed by Zacks expected $117.82 billion.
Sales at U.S. stores open at least a year rose 1.5 percent, the fifth straight quarterly increase. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed. Traffic climbed 1.7 percent.
Wal-Mart Stores Inc.'s international segment reported net sales dropped 11 percent to $29.81 billion. Net sales were $34.7 billion on a constant currency basis.
For U.S. stores, quarterly net sales gained nearly 4 percent to $72.71 billion.
Walmart expects full-year earnings to be $4.50 to $4.65 per share.
Its shares rose $1.53, or 2.6 percent, to $59.40 in premarket trading two hours before the market open.
Walmart shares have decreased 33 percent since the beginning of the year, while the Standard & Poor's 500 index has stayed nearly flat. The stock has declined 30 percent in the last 12 months.