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Wal-Mart Shares Down as Profit Projections Fall Short

Wal-Mart Shares Down as Profit Projections Fall Short

At the end of last week the biggest retailer in the world, Wal-Mart Stores Inc., released a statement saying its same-store sales were stagnant during the three months ending August 1st. Furthermore, the company reduced its full-year earnings forecast due to bigger health-care expenses and additional investments made in its e-commerce business.

Wal-Mart Shares Down as Profit Projections Fall Short

Wal-Mart Stores shares are falling after the company released a statement reducing its full-year earnings forecast.

In recent months the company has been focusing on investing in e-commerce and smaller stores as it has struggled to support its bottom line while home-market sales have fallen. The company has not posted same-store sales gains for six straight quarters and there has been a steady decline in US store traffic.

Wal-Mart Stores has said its earnings for the year ending January 31st will be between $4.90 and $5.15 per share.

This is lower than the initial projection of between $5.10 and $5.45 per share.

After the statement was released shares were down 0.16%. The last year has seen the company’s shares fall 3.26% and now the company is valued at $238.65 billion. Information released at the end of the week showed that 22 analysts offering a 12-month price forecast for the company had a median target of $81.50 with a high estimate of $90 and a low estimate of $66. The median estimate is a 10.09% increase from the last price of $74.03.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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