THURSDAY: Analysts got astonished as when Wal-Mart reports its quarterly revenue and earnings’ report – the financial data revealed bullish results to what they had been projecting. Report showcased retailer in best for its performance in U.S market.
Exclusive data obtained from CNBC cites (for readers’ concern):
Right after the financial report, retailer’s shares surged by 9% by mid-day.
|The first Q depicted an EPS worth 98 cents in comparison to $1.03 a year ago – bullish than analysts’ forecast of 88 cents|
|As for revenue, The Q estimated $115.9 billion in comparison figured $114.83 billion – bullish than analysts’ forecast of $113.22 billion|
|The retailer issued 2Q guidance for EPS worth 95 cents to $1.08, in comparison to 98 cents|
|Shares of Wal-Mart are bullish worth12% year to date. However it had been struggling for the past one year – drooping by nearly 10%|
Collectively, the U.S store sales had hiked by 1% in the Q – beating analyst prediction of 0.5%.
“There’s a mismatch there. What we need to see is that they can grow sales and earnings over time. Right now they’re investing in the business — in labor, in prices — to drive the long term. I think it’s going to take several quarters before we see any evidence that this is working.” – UBS retail analyst Michael Lasser (source: CNBC’s Squawk on the Street).
“Several things [are] working for the consumer: fuel prices, unemployment and interest rates still low. But there is an air of uncertainty that is likely keeping the consumer from being as bullish as they would like to be.” Wal-Mart CFO, Brett Biggs
UPDATE: MONDAY: The retailing giant announced to have had signed an expanded sourcing deal with McKesson, that could aid lower cost it expands an alliance for jointly procuring generic medicines, in collaborating with the U.S. drug distributor.