Walmart Earnings Meet Estimates, but Revenue Disappoints

Walmart Stores (WMT) reported Tuesday a 9% increase in income from continuing operations in the last quarter on lower expenses. And to reflect improved operations and tax benefits, the retailer increased full-year guidance.

Walmart said in the third quarter of fiscal year 2011, it earned $3.4 billion from continuing operations, or 95 cents per share, compared to $3.2 billion, or 82 cents per share in the same period last year. Walmart reported adjusted earnings of 90 cents per share, in-line with analyst estimates.

The retail giant said net sales for the quarter increased 2.6% from $98.7 billion to $101.2 billion. But this was below analyst expectations of $102.4 billion.

"Impressive" International Sales

"Walmart performed well in the third quarter, and we delivered solid earnings per share growth for our shareholders," said President and CEO Mike Duke.

The company added almost 10 million square feet of retail space this quarter, with 37% of it in Walmart International, where net sales grew more than 9% this quarter compared to last year's third quarter. On a constant currency basis, international sales grew 7.9%.

"Our International business continues to deliver impressive results," Duke said. "We also were pleased with the ongoing sales momentum at Sam's Club and expect that momentum to continue in the fourth quarter." At Walmart U.S., the retailer's largest segment by far, sales declined 0.1%, and comparable-store sales (sales at stores open for at least one year) fell 1.3% -- the sixth straight quarter of decline. Sam's Club sales grew 2.7%, while comp sales grew 2.4% without fuel.

Raised Guidance

"I'm pleased that we increased our full-year earnings per share guidance to reflect the tax benefit from the third quarter and our expectations for our business performance in the fourth quarter," Duke added.

The company increased fourth-quarter earnings guidance to a range of $1.29 to $1.33 per share, "based on our expectations for the U.S. sales environment in the fourth quarter," as CFO Tom Schoewe put it. Analysts expect earnings of $1.28 per share.

For the full year, Walmart increased guidance to $4.08 to $4.12 per share, up from the previous range of $3.95 to $4.05 per share.

Walmart U.S. expects comparable sales to range between -1% and 2% for the fourth quarter after a 2% decline in comp-store sales last year. Such growth projections for a quarter that includes holiday sales implies Walmart is still cautious about the return of consumers to its stores, which is perhaps not surprising with the persistently high unemployment.

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sgentilejr

Did you know Colgate toothpaste in Made in Mexico?? No you did not know because you never look at the packages or labels to see where what you buy is made. Little things add up fast. Buy Colgate and help eliminate USA jobs or buy another brand that is made here and help to create jobs___It is you choice. CONSUMERS are the Economy. How you spend your money can create or can give jobs away. But please____Don't cry when you cannot find a job and your children are starving to death when you are driving a foreign car, and you are wearing made in China clothing, made in Korea shoes and you buy food products made in France Italy, Mexico, Brazil etc.

November 17 2010 at 4:06 AM Report abuse rate up rate down Reply
1 reply to sgentilejr's comment
kv37

Get your facts straight. Not all Colgate-Palmolive products are made in foreign countries. Colgate-Palmolive sells the most toothpaste world wide. Of course they are going to manufacture it in other places. Get real!

November 17 2010 at 4:48 AM Report abuse rate up rate down Reply
Magnus Soevgaard

Actually our bonuses had nothing to do with Costa Rica they are awarded on idividual sales for our store not sales overall for Walmart.

November 16 2010 at 10:45 PM Report abuse rate up rate down Reply
leatherrip

Yup and part of that came from Costa Rica. Everything at Walmart here is 2 to 3 times or more than what it is in the States. This country is NOT a cheap place to retire! Big Big mistake on my part. Cannot wait to get outta here. Nothing and I mean nothing is under a buck here at Walmart. A turkey for Thanksgiving, 20 lbs is over $60.00! so guess who is supporting Walmart!

November 16 2010 at 9:52 PM Report abuse rate up rate down Reply
Magnus Soevgaard

Where the hell do some of you posters get your information about Wal Mart employees from?? No one swears oaths to anyone, I have been to 2 meetings in 20 months. During that time Wal Mart has enabled me to live quite well in these desperate times. My wife works also I live 1 and one half mile away from my store. As to working them 39 hours to avoid benefits THAT IS SO STUPID!!! You are a full time employee if you have 33 or more hours per week on a consistent basis. Only a complete idiot thinks they know Wal Mart when they never worked for them. My manager is a real Lady, a successful woman who cares a great deal about her employees how dare you disgruntled people lump all of them together. She has never said work harder work faster that is so damn stupid. I take personal pride in keeping our front end as clean as possible. We get hundreds of compliments a day from grateful customers who come from 80 miles away to shop at our store #3731. I am getting a bonus on my paycheck in December due to great sales what do you think of that?? I give any employer of mine my best that is supposed to be the American work ethic. I accepted for a part time job because that is what they offered me when I applied. I frequently get 40 hour weeks because they need help and they know they can depend on me. This Holiday season I can expect at least 4 full time weeks I am very grateful to Wal Mart. If only you knew how they stress customer service you would feel so foolish. Getting employees to do as they are asked is the problem just like in any business. Visit my store I will treat you good.

November 16 2010 at 5:20 PM Report abuse +1 rate up rate down Reply
donut999

addition to previous. another thing about walmart love/hate just goes back to the old saying about pornography-----if you don't like it, don't buy it or look at it. and, target, et al, are sourcing their merchandise from the same places walmart is getting theirs. they are not patriotic heroes buying u.s. made. they just finally woke up and found out they needed to work on thinner margins to survive.

November 16 2010 at 4:27 PM Report abuse +1 rate up rate down Reply
donut999

i can't find anything wrong with walmart except their stock is just a dog. pull up a 10 year chart. you could have bought it at $54 in 2000 and it is worth $54 today. even worse are the highs and lows. $62 and $42 and not still looking at chart, but believe mostly big gaps like 5 years in between. how they do business is just how they do business. that is what capitalism is about. if it doesn't work the system would have fixed it (put them out of biz) years ago. only thing i will defend them on is their existence has brought prices way down at other retail stores which ultimately benefits all consumers.

November 16 2010 at 4:21 PM Report abuse +1 rate up rate down Reply
CJ

Walmart has gone to the dogs. All they sell are those cheap made in china, Indonesia, cambodia junk junk junk. I no longer buy Walmart. Customer service is a thing of the past. The one thing that Sam Walton did was to sell only things made in the USA. No MORE, it is now owned by his relatives and all they want is money money money. They work their employees 39 hour work weeks to avoid paying Insurance. Sell your crap you maKE over seas, over seas, WE DONT WANT IT.

November 16 2010 at 3:29 PM Report abuse -1 rate up rate down Reply
stag01987

I worked at Walmart for two years. The only thing Walmart still has is somewhat lower prices than a lot of competitors, but the competitors are catching up. Walmart has totally become a company that's more concerned for it's shareholders instead of the customer. Customer service is non existent at Walmart because they keep their stores so under staffed. At shift meetings, management never discusses customer complaints and what could be done to solve them. They only discuss stock prices and tell the associates they need to work harder and faster. They suck the life out of everyone who works there. The only reason they still have employees is because there's nothing else at the moment. If a miraculous recovery happened overnight, you would see a mass exodus of Walmart workers.

November 16 2010 at 2:41 PM Report abuse -1 rate up rate down Reply
1 reply to stag01987's comment
donut999

well, that is why they call it work. i have been an employee and an employer for the last 40+ years. i didn't always agree with what the employer wanted/expected, and i can certainly testify that as an employer, my employee's were not always in agreement with me. that is why they call it work. do all the people on here really want walmart to go down? they do employee 2 million people. are you saying put 2 million people out of work? for all the bashing, walmart has never had trouble hiring all the employee's they need.

November 16 2010 at 4:39 PM Report abuse +1 rate up rate down Reply
Master Sixkiller

Wally World you should dance with the one's that brought you, but seeing how you like to ruin peoples lives and lively hoods and would much rather deal with China I have one question to ask how life living in a jar of jalapenos. What you do and say today comes around and burns your A$$ tomorrow. If I can find it some where else I'll buy it there even if I have to pay a little more for it.

November 16 2010 at 1:55 PM Report abuse rate up rate down Reply
johnsoncrew4

Screw Wal-mart!!

November 16 2010 at 1:52 PM Report abuse +1 rate up rate down Reply