Wal-Mart sees profits up eight percent

Source: Exec Digital USA

Date :11/13/2007 8:48:25 AM

Wal-Mart Stores Inc., the world's largest retailer, said today that its fiscal 2008 third-quarter profit grew eight percent to top Wall Street expectations.

For the quarter ended Oct. 31, net income grew to $2.86 billion, or 70 cents per share, from $2.65 billion, or 63 cents per share, last year. The latest period includes a gain of a penny per share on the sale of property.

Global

Total revenue, including membership and other income, grew to $91.95 billion from $84.47 billion a year ago. Net sales grew nearly nine percent to $90.88 billion from $83.54 billion, helped by 16.9 percent international growth and 6.4 percent growth in U.S. Wal-Mart stores.

The results beat consensus estimates of analysts surveyed by Thomson Financial, who expected profit of 67 cents per share on revenue of $91.67 billion.

"Our results for the third quarter reflect the improved performance of our U.S. operations. Both Wal-Mart Stores U.S. and Sam's Club increased profits faster than sales. Wal-Mart International posted a solid quarter as well," said Lee Scott, Wal-Mart Stores president and chief executive.

Rise

For the fourth quarter of fiscal 2008, the company expects sales at U.S. stores open at least a year to be flat to up two percent. Wal-Mart Stores forecast quarterly earnings per share from continuing operations between 99 cents and $1.03, resulting in full-year profit of $3.13 to $3.17 per share.

The guidance includes an anticipated restructuring charge of about $40 million in the fourth quarter.

Wall Street is predicting quarterly earnings per share of $1.02 and full-year profit of $3.09 per share.

November 13, 2007