Wal-Mart 3Q Profit Up 9 Percent

Northwest Arkansas

by Talk Business & Politics ([email protected]) November 15, 2012 10:02 am 105 views 

Wal-Mart Stores Inc. said Thursday its third-quarter net income rose 9 percent over the same quarter last year.

Early Thursday, the world’s largest retailer reported earnings of $3.64 billion, or $1.08 per share, for the quarter that ended Oct. 31, up from $3.34 billion, or 97 cents per share, in the same period a year ago.

The Bentonville-based company topped the average earnings estimate of $1.07 per share from 23 analysts surveyed by Thomson Reuters.

Revenue rose 3.4 percent, to $113.93 billion, including membership fees and other income.

Wal-Mart’s results are considered a bellwether of consumer spending because the company draws nearly 10 percent of all non-automotive retail spending in the nation.

Wal-Mart’s U.S. division, the company’s largest, reported net sales of $66.13 billion, up 3.6 percent. Excluding fuel, sales at stores open at least a year, considered a key indicator of a retailer’s health, rose 1.5 percent in the 13-week period that ended Oct. 26.

Net sales for Wal-Mart International grew 2.4 percent, to $33.16 billion.

And net sales, including fuel, at Sam’s Club, Wal-Mart’s warehouse club division, rose 4.7 percent to $13.99 billion. Same-store sales, excluding fuel, grew 2.7 percent in the 13 weeks that ended Oct. 26.

“Our disciplined approach to operating the business and to the productivity loop drove profitability and expense leverage,” Wal-Mart president and CEO Mike Duke said in a news release. “Our fundamentals are strong, and we are well-positioned for the fourth quarter, including innovative plans to drive traffic, especially in our U.S. stores.”

Duke added the company will continue to invest in e-commerce.

Charles Holley, Wal-Mart’s executive vice president and chief financial officer, said the company is tightening the top end of its guidance for the fourth quarter to a range of $4.88 to $4.93, compared to previous guidance of $4.83 to $4.93.

Wal-Mart’s shares were down $2.82, or 3.93 percent, at mid-morning Thursday, trading at $68.50 on the New York Stock Exchange. Shares have traded between $56.26 and $77.60 in the past year.