Boston, MA 02/20/2014 (wallstreetpr) – Wal-Mart Stores, Inc. (NYSE:WMT) has just reported its fiscal 2014 fourth quarter performance. While the giant retailer has left many people talking about its revenue and profit figures for the just announced quarter, a lot of chatter is now centered on the guidance it has issued for the current quarter and full-year. More about that in just a while, but first, a look at what the retailer has just released in terms of performance.
The company has announced a significant drop of 21 percent in its fourth quarter profits compared to the same period a year earlier. The world’s largest retailer announced earning $4.43 billion, translating to $1.36 per share. That compared with $5.61 billion or $1.67 per share realized in the corresponding quarter a year earlier.
On the adjusted basis, Wal-Mart Stores, Inc. (NYSE:WMT) ended the troubled fourth quarter with earnings per share of $1.60, thus managing to exceed forecasts by 1 cent. As concerns revenue, the blue-chip company reported $129.7 billion, suggesting about 1.5 percent uptick from the previous figures in the corresponding quarter a year ago, but narrowly missing Wall Street estimate of $130.38 billion.
Important growth indicators
Wal-Mart Stores, Inc. (NYSE:WMT) considers same stores sales a key growth indicator and thus it is always a priority to boost performance there. In the latest quarter reporting, the company noted a light drop in comp sales at 0.4 percent. The company’s CEO Doug McMillon said in a statement that they are focused on delivering value and also improving one stronger item and category to boost this line.
Troubled outlook
Wal-Mart Stores, Inc. (NYSE:WMT) has declared first quarter and full-year guidance that has left experts from analysts at Raymond James to most everyone in Wall Street talking. The discussions are not just based on the figures released but how the guidance can be attained or impacted by the prevailing weather condition.
As for the figures, the retailer announced that it expects earnings per share in the current quarter to fall in the range of $1.10 to $1.20. That comes at a time when analysts are looking for $1.23 per share. For the full-year, Wal-Mart Stores, Inc. (NYSE:WMT) hopes to net $5.10 to $5.45 earnings per share. For the Street view, the company should report $5.56 to satisfy expectations.
Wal-Mart Stores, Inc. (NYSE:WMT) also expected net sales to scale up in the range of 3 to 5 percent in the full-year.
Analysts believe that while Wal-Mart Stores, Inc. (NYSE:WMT) is factoring weather in its latest guidance, there lies the issue on how investors will trade the stock over the next several months. The reality though is that winter weather is impacting U.S. sales as few people visit stores. However, this can also result in performance boost for e-commerce business.
