Wal-Mart shares up more than 3%: Q4 earnings beat estimates
Published Feb 21, 2017 01:17PM ET
Sales at Wal-Mart's U.S. stores experienced explosive growth in Q4
Investing.com - Wall-Mart shares soared more than 3% in mid-session U.S. trade on Tuesday, after the retail giant reported a fiscal fourth-quarter (Q4) earnings per share (EPS) of $1.30, which topped Wall Street estimates of $1.29.
A surge in Wall-Mart’s same-store U.S. sales and growth in e-commerce, were highlighted as key factors that helped Wal-Mart (NYSE:WMT) overcome the challenge of a stronger U.S. dollar during Q4.
Comparable sales at U.S. stores - a measure often used to assess a retailer’s health – grew 1.8%, representing the largest same-store sales increase since July 2012 while U.S. digital sales rose 20% during the quarter.
Walmart’s online digital sales growth comes off the back of a heavy round of acquisitions over the past five months. The U.S. retailer has acquired three online retailers over the past five months – The $3 billion capture of Jet.com is its largest acquisition during the period.
Despite growth in comparable sales at 10 of Wal-Mart’s 11 international markets, the UK continued to be Wal-Mart’s weakest market, amid competition from low-price rivals’ like Aldi and Lidl.
Forward guidance for fiscal 2018 was largely in-line with estimates – Wal-Mart expects to earn between $3.21 a share and $4.40 a share, compared with Wall-street estimates of $4.33.
Wal-Mart last traded at $71.51, up 3.10%.
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Written By: Investing.com
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