Wednesday, November 17, 2010

WMT Posts 3Q; Raises Outlook

Wal-Mart Stores Inc. (WMT) 3Q earnings posted on Tuesday, November 16th, showed a 9.3% increase in profits mainly due to successful international operations and cost controls. However, the company's biggest unit, U.S. same-store sales fell for a sixth straight quarter as the world's biggest retailer contended with still-struggling low-income customers and management changes. WMT posted Net sales for the third quarter were $101.2 billion, an increase of 2.6 percent. Wal-mart income from continuing operations attributable to the quarter was $3.4 billion, up from $3.2 billion in the third quarter last year. Wal-Mart did raise its current-year earnings forecast from $4.08 to $4.12 a share from $3.95 to $4.05 as it projected earnings of $1.29 to $1.33 a share for the fourth quarter. WMT believes they will continue to see driving growth through international operations along with a tax benefit, and predicted that same-store sales growth will turn positive during the period. Wal-Mart shares rose 0.8% premarket, to $54.40.

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