Wal-Mart Stores Inc. (NYSE: WMT) reported better-than-expected first quarter results prior to Thursday`s market trading, driven by increasing sales in the U.S. market and the successful cost management. Shares of Wal-Mart rose more than 9 percent in today`s market trading after the announcement.
Wal-Mart reported a 0.9 percent boost in revenues to $115.9 billion ($119.4 billion excluding currency) in the period, which toped Reuters consensus estimates of $113.22 billion. The company posted first-quarter earnings per share of 98 cents, versus $1.03 a share in the year-earlier period, beating Zacks Consensus Estimate of $0.88. Sales at U.S. stores open at least a year rose 1 percent, double Wall Street`s estimates. Wal-Mart continued focus on reducing costs in business operating. Costs also benefit from procuring merchandise, lower fuel prices, maintenance expenses cut due to a milder winter in the U.S., and slightly lower costs from store closures announced last quarter.
“We are proud of the overall results in the first quarter, and there is momentum in many parts of the business.” said Brett Biggs, Wal-Mart Stores, Inc. executive vice president and CFO, who made positive expectation for next quarter in the press release.
“Based on our views of the global operating environment, and assuming currency exchange rates remain at current levels, we expect second quarter fiscal 2017 earnings per share to range between $0.95 and $1.08,” said Brett Biggs, “Additionally, we expect comp sales for Walmart U.S. to be about +1.0 percent, and Sam's Club, without fuel, to be slightly positive for the 13-week period ending July 29, 2016.”