- For Many in US, It Will Be a Scaled-Down Holiday Season
- US Bonds Pare Losses After 7-Year Auction
- New-Home Sales Jump to Highest Level in Over Year
- Judge Erases Couple's $525,000 Mortgage Payment
- Claims Level Suggests End to Job Losses
- Consumers Catching the Holiday Spirit
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- Airlines Hit With Penalties for Stranding Passengers
- Consumer Mood Improves, but Anxiety Over Finances
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- S&P Stocks Trading at New 52-Week Highs
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Treasury On Mortgage Modifications
- Blue Jeans Expected to See Another Green Christmas
MOST SHARED
- Ritz-Carlton ?Struggling? in the US: President
- Garlic Price Rises Surpass Gold, Stocks in China
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Oil Price to Average $75.40 in 2010: Poll
- S&P Stocks Trading at New 52-Week Highs
- Americans Ditch Planes for Trains this Thanksgiving
- Consumer Mood Improves, But Anxiety Over Personal Finances
- Jobless Claims Below 500,000, Durable Orders Slip
Text Size 
Wal-Mart Stores posted quarterly sales and profit that fell short of expectations, and lowered its earnings forecast, saying that customers remain under economic pressure.
 |
Shares [WMT
Loading...
()
] of the Dow component fell more than 5 percent on the New York Stock Exchange Tuesday.
The world's largest retailer reported earnings of $3.1 billion, or 76 cents a share, for the second quarter ended July 31, up from earnings of $2.08 billion, or 50 cents a share, in the year-ago period. But excluding one-time items, the company earned 72 cents a share, flat with earnings from continuing operations in the same quarter a year ago.
Revenue rose 7.7% from the year-ago period to $91.99 billion.
Analysts surveyed by Thomson Financial predicted profit of 76 cents a share on revenues of $92.8 billion.
The company earlier said it expected to earn between 75 cents and 79 cents a share for the period.
Wal-Mart reduced its full-year earnings estimate from continuing operations to $3.05 to $3.13 a share from $3.15 to $3.23 a share. Analysts had predicted a full-year profit of $3.16 a share. For its fiscal third quarter, Wal-Mart sees earnings of 62 to 65 cents, below the consensus estimate of 68 cents a share.
"I certainly think that (the results have) come as a little bit as surprise, not necessarily the second quarter number, but when you look at the second-half and guiding down for the year, the market's saying that's a disappointment," John Lawrence, senior retail analyst at Morgan Keegan, told "Squawk Box."
The home and domestic products business needs to turn around a little bit, but overall Wal-Mart is just being cautions "with the economy where it is," Lawrence said.
Modest Same-Store Sales Growth Seen
Same-store sales for the second quarter rose 1.9% and the company said it expects third-quarter same-store sales to be higher by between 1% and 3%.
Chief Executive Lee Scott blamed the disappointing performance on economic pressure around the world.
"It is no secret that many customers are running out of money toward the end of the month," Scott said on a recorded conference call, citing consumer pressures ranging from high gas prices to the U.S. housing slump.
"Many customers around the world continue to be under economic pressure and they expect Wal-Mart to be their advocate," Scott said.
Generally, grocery sales have been stronger than general merchandise at Wal-Mart. Apparel and home products sales have been weak as the housing continues to show weakness.
Print
Email
- Here's how key provisions of the health care reform bill would impact your insurance and how you'll pay for it.
- Remember when auto shows were major events where new models could generate buzz?
- It may be the most unusual guide to business you'll read.
- After nine years the NBA’s minor league equivalent is finally coming into its own.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes