Walmart (WMT) beat consensus estimates for earnings when it announced results for 3QFY13 but growth prospects are still doubtful. Comparable store sales for Walmart US fell following a decline in customer traffic while Sam’s Club was able to grow its comparable store sales. The company’s e-commerce initiatives have been successful so far, contributing to strong double digit growth in online sales, but the category is still too small to have a significant impact on the company’s growth. The stock is a hold, considering the company’s efforts to keep creating shareholder value through share repurchases and payouts.
Introduction
Walmart beat analysts’ estimates for earnings by over 1% in 3QFY14. Its stock price however, hasn’t shown any significant change following the release of quarterly results because investors continue to worry about declining comparable store sales (comps) despite an improvement in earnings. Comparable store sales (comps) in the US were down 0.1% excluding fuel and 0.2% including fuel.
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