Published on March 1st, 2015 | by Daily Station Team

The inside report of the fourth Quarter, Wal-Mart (NYSE:WMT)

Wal-Mart Stores

Wal-Mart Stores, Inc. (NYSE:WMT) announced its fourth quarter numbers which also set the stage for other retail companies to come up with their quarterly numbers.

The fourth quarter was the most important quarter for all the retail stores as it was the season of holidays. Holiday season is considered to be the busiest season for all the retail stores. Wal-Mart expectations for the EPS in fourth quarter is between $1.4 – $1.5

2014 holiday season sales were more in line with the estimations quoted by National Retail Federation. The consumer spending during the season was good with the purchase of holiday gifts additionally over the merchandise and other consumer durable goods. After noticing the trend Wal-Mart was also fully geared up to meet the demands of the consumers both at the store physically as well as online in virtual terms.

The company also invested in the technology heavily to reach the customers and satisfy their needs and demands who place their orders from cell phones etc. The holiday season started from the Thanksgiving and some of the sellers proactively kick started the season much early in the November to avoid delivery debacle. NRF determines 4% growth in the the total holiday retail sales to $616.1 billion. NRF said that this was in line with its estimated 4.1% growth. Aside from the holiday season, non-store holiday sales witnessed 6.8% uptick to $101.9 billion. The drop in prices of Gasoline would have also favorably impacted retail store sales in December.

The Speculations on Earnings for Quarter:

26 Wall Street analysts’ estimated Wal-Mart Stores to deliver earnings of $1.53 a share and $132.32 billion revenue for the December quarter of 2014. Three months ago, analysts’ estimated $1.54 a share, and then reduced it to $1.53. In the last four quarters the earnings of the company has always been more than the street expectations. However, Analysts claim that Walmart may report a rop of 4.4% drop in the earnings despite predicting the growth of 2%.


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