Wal-Mart 2Q earnings exceed estimates; six-month income flat

Wal-Mart Stores Inc. is financially holding steady during the recession, with the company posting net income from continuing operations for the six month period ending July 31 of $6.703 billion, up just 0.3% over the same period in 2008.

The Bentonville-based retail giant had total revenues for the six-month period of $195.15 billion, down 1% from the same period in 2008. The company’s net earnings per share of 88 cents beat analyst estimates by 2 cents per share.

For the second fiscal quarter of 2009, Wal-Mart posted $100.08 billion in sales, down 1.4% from the same quarter in 2008. However, the company had a $4.199 billion hit with currency exchange from its international operations.

Sales at Walmart stores in the U.S. totaled $125.45 billion in the six-month period ending July 31, up 2% over the same period in 2008. Sales at Sam’s Club stores for the six-month period in 2009 were $22.872 billion, down 2.4% from the same period in 2008.

“Our performance this quarter has been good, despite headwinds from price deflation, the effects of the recession and currency exchange rates,” Tom Schoewe, Wal-Mart executive vice president and chief financial officer, said in the earnings statement. “We’re proud that Walmart reported a year-over-year increase in earnings this quarter.
 
Schoewe also said in the statement that the company generated $4.2 billion in free cash flow during the first half of 2009.

Wal-Mart shares (NYSE: WMT) closed Wednesday at $50.51. During the past 52 weeks the share price has ranged from a $63.85 high to a $46.25 low.