Wal-Mart Stores Announces Q3 Results

Wal-Mart Stores Inc. (NYSE:WMT) has reported 9.3 percent increase in its earnings for the fiscal third quarter of the year. The increase is mainly attributed to strong international operations. However, the company also reported drop in its US same store sales. Bill Simon, head of Wal-Mart’s US operations, said, “We are in a position of strength for the busiest and most critical season of the year.”

* Wal-Mart Stores earned $3.44 billion or 95 cents per share in profits for the quarter.
* Wal-Mart Stores had earned $3.14 billion or 82 cents per share in profits during the corresponding quarter of the year.

Wal-Mart Stores’ result includes 5 cents per share in tax benefit. The result surpassed the company’s forecast of profits in the range of 87 cents and 91 cents per share.  The company also reported 2.6 percent increase in its revenue to $101.95 billion. The figure lagged behind the consensus estimate of $102.26 billion in revenue. Wal-Mart Stores saw its gross margin declining to 25 percent from 25.1 percent.

Wal-Mart Stores increased its full year earnings forecast to $4.08-$4.12 per share. The company expects to earn in the range of $1.29-$1.33 per share during the fiscal fourth quarter of the year.

Key Financial Stats

Valuation

* Price/Earnings(TTM)13.80
* Price/Cash Flow8.60
* Price/Sales (TTM)0.47
* Price/Book3.03

Financial Strength

* Quick Ratio (MRQ)0.20
* Current Ratio (MRQ)0.80
* LT Debt to Equity (MRQ)0.60
* Total Debt to Capital (MRQ)0.76
* Return on Equity23.80

Assets

* Asset Turnover2.40
* Asset per Employee23014.76
* Inventory Turnover8.90

Per Share Data

* Earnings (TTM)3.90
* Current P/E Ratio0.80
* Cash Flow6.28
* Annual Dividend1.21
* Book Value17.78
* EBITDA6.00

Profitability

* Market Cap3.90
* Gross Margin (TTM)27.10
* Operating Margin (TTM)6.00
* Profit Margin (TTM) 3.70

Management Effectiveness

* Return on Equity (TTM)23.80%
* Return on Assets (TTM)8.70%
* Return on Investment (TTM)14.90%