Wal-Mart Stores, Inc. (NYSE: WMT) reported Q3 results this morning that beat analyst estimates, although it cautioned against future profits due to a stronger value of the American dollar. In an uncharacteristic tone by the company, it seemed upbeat about the in-progress holiday shopping season, which officially begins the Friday after the Thanksgiving holiday.The world's largest retailer posted a profit of $3.03 billion or $0.77 per share for the latest quarter. This was up from $2.85 billion, or $0.70 per share in the year-ago quarter. In a quarter where consumers slashed their spending, they must not have done so at Wal-Mart. The retailer is seeing a windfall due to what seems like every American's belt-tightening. Not many others are experiencing the same good fortune from this shift in consumer behavior as Wal-Mart.
Revenue for the quarter also rose to $97.63 billion from $90.82 billion in the year-ago quarter -- a 7% increase. Although Wal-Mart beat consensus estimates by a penny, it fell short of the $98.42 billion revenue expectation at the same time. The retailer also indicated that Q4 profit would be impacted by the stronger U.S. dollar and the crimping in international business it would cause. Even with that drop, the company expects a Q4 profit take of $1.03 to $1.07 per share on the back of the holiday shopping season.
Reader Comments (Page 1 of 1)
11-15-2008 @ 12:25AM
Roudy said...
Hey Brian,
I notice there isn't as much negative response in the Wal-Mart blogs like yours since the economy has slowed and Wal-Mart and maybe Cosco are the only retailers still doing well. I said last year that when money got tight WMT would still do well and I'm just a poor country boy with only a high school education.I did learn early in life that low prices and value are still the bottom line in the end.Go get "em Wal-Mart!! RoudMan