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The retailer has recorded more than three straight years of
comparable sales growth, despite slow demand and a tough retail
environment that has hurt brick-and-mortar rivals.
Excluding special items, earnings per share came to $1 in the
third quarter ended Oct. 31, exceeding the average analyst
estimate of 97 cents, according to Thomson Reuters I/B/E/S.
Sales at U.S. stores open at least a year rose 2.7 percent,
excluding fuel price fluctuations. That is stronger than market
expectations for a rise of 1.7 percent, according to Consensus
Metrix.
Online sales soared 50 percent during the quarter, exceeding
growth rates in the industry, but slower than the previous
quarter's 60 percent rise. It added 80 basis points to the third
quarter comparable sales gain.
Wal-Mart also raised its full-year profit forecast. It now
expects earnings per share of $4.38 to $4.46 for the fiscal year
versus its previous outlook of $4.30 to $4.40.
On Wednesday, rival Target Corp's <TGT.N> holiday quarter profit
forecast fell short of analysts' expectations, sending its
shares down 10 percent.
Wal-Mart's operating income fell 6.9 percent to $4.76 billion.
Operating margins fell to 3.9 percent from 4.4 percent in the
same period a year earlier due to continued investments in
making its prices more competitive compared to rivals.
Earlier this year, devastating Hurricanes Harvey and Irma
spurred demand at retailers for prevention and recovery
materials along with food and grocery items.
Shares of Wal-Mart traded at $93 before the market opened, up
from Wednesday's close of $89.83. It has risen over 30 percent
so far this year.
(Reporting by Nandita Bose in Chicago; Editing by Jeffrey Benkoe)
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