Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, February 21, 2014

Article Excerpt

WAL-MART STORES INC., $73.12, New York symbol WMT, reported better-than-expected earnings this week. However, the company’s U.S. big box stores are facing strong competition from online retailers, particularly for clothing and electronics. Harsh winter weather has also slowed customer traffic. In the fourth quarter of its 2014 fiscal year, which ended January 31, 2014, Wal-Mart’s earnings fell 22.2%, to $4.35 billion from $5.6 billion a year earlier. Earnings per share declined 18.6%, to $1.34 from $1.67, on fewer shares outstanding. Without several unusual items, such as costs to close stores in Brazil and China and restructure its Sam’s Club warehouse outlets, Wal-Mart earned $1.60 a share in the latest quarter. That beat the consensus estimate of $1.59. Overall sales rose 1.5%, to $129.7 billion from $127.8 billion, missing the consensus forecast of $130.4 billion. If you disregard unfavourable currency exchange rates, Wal-Mart’s sales would have risen 2.8%. Sales at the company’s U.S. stores, which supply 59% of the total, rose 2.4%, but same-store sales…