Profit Boost Perks Up Wal-Mart Shares
Business Law
Wal-Mart (WMT) shares climbed 3% Thursday after the giant retailer surprised Wall Street by boosting its earnings estimate for the third quarter, despite tepid sales.
The Bentonville, Ark., company said it now expects to make 68 cents to 69 cents a share for the quarter, up from its previous forecast of 62 cents to 65 cents a share. Analysts polled by Thomson Financial expected earnings of 63 cents a share.
The company said it had improved expense controls at its Wal-Mart Stores division, which expanded profit margins. That helped offset relatively meager sales growth.
Wal-Mart said same-store sales rose 1.4% from a year ago in September, at the lower end of its forecast for a 1% to 3% rise. Analysts expected a 1.8% increase in same-store sales, or sales at stores open at least a year.
Sales in established Wal-Mart stores inched up 0.8%, and those at warehouse-club operator Sam's Club jumped 4.4%.
"Overall, apparel and home remain soft. Company research reinforces that customers remain concerned about their finances, especially the cost of living," Wal-Mart said. "In addition, unseasonably warmer weather in much of the country, coupled with tighter consumer spending, negatively impacted key seasonal categories."
The report came as many retailers reported sluggish sales for September, including Wal-Mart rival Target (TGT) and department-store chains like J.C. Penney (JCP) and Macy's (M) . While several chains attributed the drop to warmer-than-average weather, the companies are also dealing with inventory missteps and the threat of tighter consumer spending.
Related listings
-
Treasurys Dip As Rate Cut Seems Unlikely
Business Law 10/10/2007[##_1L|1353340092.jpg|width="128" height="81" alt=""|_##]Treasury prices fell Wednesday amid a growing consensus in the bond market that the Federal Reserve won't cut rates this month. Minutes from the Fed's September monetary policy meeting, release...
-
GE to close some plants in Brazil
Business Law 10/07/2007General Electric Co. said Thursday it will close a number of lighting plants in Brazil and the U.S. as part of a plan to restructure its consumer and industrial division, potentially cutting more than 1,400 jobs in the process. GE Consumer & Indu...
-
Ford struggling to win back sales, share
Business Law 10/03/2007Ford Motor's biggest rival, General Motors, has a tentative contract deal with the United Automobile Workers union and relatively stable sales. Ford has neither. Sales at Ford fell 18.2 percent in September, closing out its 2007 model year on a disap...
Victorville CA DUI defense Attorneys
The outcome of a DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
The charges you are facing for a DUI range from fines, a 12-month suspension on your license and worst-case scenario, prison time. Your attorney will be able to analyze your situation to decide the best way to go about your case.
Our attorneys know the tricky ways to challenge all of the DUI tests and know how to claim improper collection of evidence. We will be able to negotiate on your behalf and free you from charges and help you keep your drivers license. The DUI process can last up to several months, we can make this process easier on you. .