Wal-Mart (WMT) Blows Past Expectations on Strong Overseas Growth

Wal-Mart Stores Inc. (NYSE:WMT) on Tuesday posted a 27 percent increase increase in fourth-quarter income, as the company used cost-cutting efforts and strong international sales boosted earnings.

The world's largest retailer reported fourth-quarter net income of $6.06 billion or $1.70 per share, compared with $4.76 billion or $1.25 per share in the same quarter last year.

Excluding one-time items, the company reported fourth-quarter earnings of $1.34 per share, 3 cents better than the analyst estimate of $1.31 per share.

Revenue for Wal-Mart rose 2.4 percent to $116.3 billion in the three month period ended January 31, compared to the market consensus of $117.68 billion.

Same store sales or sales at locations open at least one year dropped 1.1 percent from last year. International sales rose 8.9 percent to $31.4 billion.

“Walmart International continues to be our growth engine, and we expect accelerated growth in emerging markets. International net sales exceeded $109 billion this year, an increase of more than 12 percent over the prior year. Every country contributed a sales increase in fiscal 2011, compared to the prior year,” said Mike Duke, Wal-Mart president and CEO.

Looking forward, Wal-Mart sees first quarter earnings in the range of 91-96 cents per share, compared to the Street's view of 96 cents per share.

For the full year, the company sees earnings of $4.35-$4.50 per share, compared to the consensus of $4.44 per share.

Source: StreetInsider