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Walmart earnings beat, shares rally

Nov 17, 2015, 17:34 IST

Demonstrators from Interfaith Worker Justice participate in a Black Friday protest against Walmart's labor practices in Alexandria, Virginia November 28, 2014.REUTERS/James Lawler Duggan

Walmart's Q3 financial results are out, and the numbers are a bit noisy.

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The world's largest retailer reported earnings of $1.03 from continuing operations, but just $0.99 excluding the impact of adjustment to leases. Analysts were expecting $0.98 per share.

Traders are reacting positively. Shares are up 3% in pre-market trading.

Year-to-date, shares are down about 32%. They had the worst drop in 15 years on October 14 after the company announced it was trimming its estimate for profits for the next two years.

In Tuesday's earnings statement, the company lowered its estiamte for full-year earnings per share to between $4.50 and $4.65, and between $1.40 and $1.55 for the fourth quarter.

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Comparable store sales at Walmart's US locations open for at least one year climbed 1.5%, with traffic up 1.7%.

E-commerce sales increased by 10%.

More to come...

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