Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, February 19, 2016

Article Excerpt

WAL-MART STORES INC., $64.67, New York symbol WMT, reported better-than-expected earnings this week. However, the retailer cut its sales forecast for the current year. That caused the stock to fall 3%. In the fourth quarter of its 2016 fiscal year, which ended January 31, 2016, Wal-Mart earned $1.49 a share, down 7.5% from $1.61 a year earlier. These figures exclude costs related to the company’s recently announced plan to close 269 of its less-profitable stores and other unusual items. On that basis, the latest earnings beat the consensus forecast of $1.43. The company’s decision to invest more in its e-commerce businesses and increase worker pay contributed to the decline. Still, those moves should reduce turnover and improve efficiency. On the revenue side, Wal-Mart also plans to expand its selection of fresh fruits and vegetables. Overall sales in the quarter fell 1.4%, to $129.7 billion from $131.6 billion, missing the consensus estimate of $130.6 billion. Excluding the high U.S. dollar’s negative impact on…