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Walmart Store ExteriorBefore the opening of the market on Thursday, Wal-Mart came out with its 3rd quarter fiscal 2015 results. Wal-Mart stores Inc. declared EPS of $1.15 on overall revenues of $119 billion. These numbers include the membership fees involved in Sam’s club. Last year‘s statistics around the same time showed EPS of $1.14 on revenues of $115.69 billion. Thomson Reuters had anticipated the 3rd quarter results with the EPS of $1.12 with revenue of $118.35 billion.

Wal-Mart same store sales showed a boost after 7 quarters and according to Wal-Mart the rise in sales were due to inflation cramped by SNAP related headwinds. The Same Store Sales at the U.S based Wal-Mart showed an increase of 0.5% at the superstore and other discount stores. This increase was the same both with and without the fuel sales. Same Stores Sales in Wal-Mart’s Sam’s club rose by 0.4% without fuel and were up by 0.3% with fuel sales. On the other hand the Same Store Sales at the Neighborhood market went up by 5.5% brining the net total of the U.S sales to 3.4% in the quarter.

In last year’s 4th quarter Wal-Mart’s EPS was $1.60, however the predictions made were of $1.57. The predictions for the 4th quarter of 2015 EPS are between the ranges of $1.46 and $1.56. Wal-Mart also lowered its full year expectation of the EPS range from $4.90 – $5.15 to a new range of $4.92 – $5.02. However the overall consensus estimate is said to be $4.99 EPS for the whole year. The 4th quarter EPS estimate will include a $0.03 charge which will be related to the store closing in Japan.

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Wal-Mart’s CEO expressed his contentment and said that the highlights for the quarter include the positive comp in Wal-Mart U.S, which include strong performance from Neighborhood markets, the 21% increase in e-commerce sales globally and the profit gained by the performance of Sam’s club and the company’s international business. He also said that it is their priority to remain the price leader and it is their commitment to their customers as well. And this responsibility becomes more important during the holiday season. He further said that this year’s 4th quarter had the advantage of lower fuel prices in the U.S and other key markets.

The E-commerce sales in the quarter went up to about 0.2% in the quarter. The U.S operating income declined $4.93 billion instead of $4.99 billion decline that was seen last year. On the other hand the international operating income went up to $1.43 billion, which is higher than last year’s international operating income. Not only that but on Thursday morning the Wal-Mart’s shares were also up more than 2% in premarket trading at $80.89 in a 52 week range of $72.27 to $81.37.

Whether this 4th quarter boost in Wal-Mart’s revenue will continue to rise or not is something that cannot be predicted, however this report is a relief for the world’s largest retail company because the last 7 quarters were not in favour of them. The 4th quarter earnings might prove to be the ice breaker and this might be the beginning of a more prosperous future for the company. We will have to wait and see what the future holds for Wal-Mart.

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