Regis Philbin
Aug 15th, 2006, 06:38 PM
http://www.breitbart.com/news/2006/08/15/D8JH2Q400.html
Wal-Mart Posts 1st Profit Fall in Decade
Aug 15 4:22 PM US/Eastern
By MARCUS KABEL
Wal-Mart Stores Inc. posted its first profit decline in a decade Tuesday as the world's largest retailer paid a hefty price for closing its loss-making German stores while high energy prices hit its sales and costs at home.
Chief Executive Lee Scott said sales were disappointing at Wal-Mart's U.S. stores, its largest division. Customers were making fewer shopping trips to save gas, while Wal-Mart's own bills for fuel and utilities were up, he said.
"In the United States, customers tell us they are most concerned about gas prices," Scott said in a prerecorded message. "This has been consistent every month this quarter."
Results were still in line with expectations and the company reiterated its guidance for the year.
But analysts questioned whether a third-quarter forecast on the low end of expectations meant the company could meet its target for the year. Wal-Mart's stock fell 73 cents, or 1.6 percent to $44.37 in late morning trading on the New York Stock Exchange.
The company forecast third-quarter earnings between 59 cents and 63 cents per share, compared with the average analyst estimate of 63 cents. It reiterated a full-year forecast of $2.88 to $2.95 per share, while analysts were predicting $2.92 per share.
"The quality of the quarter itself is kind of moderate. It does not look nearly as good as what we've seen from some of their peers as far as earnings and sales growth," said David Heupel, a portfolio manager for Minneapolis-based Thrivent Investment Management, with $2.5 billion in assets. The large-cap growth fund within Thrivent that Heupel manages sold its Wal-Mart shares this year.
Wal-Mart Posts 1st Profit Fall in Decade
Aug 15 4:22 PM US/Eastern
By MARCUS KABEL
Wal-Mart Stores Inc. posted its first profit decline in a decade Tuesday as the world's largest retailer paid a hefty price for closing its loss-making German stores while high energy prices hit its sales and costs at home.
Chief Executive Lee Scott said sales were disappointing at Wal-Mart's U.S. stores, its largest division. Customers were making fewer shopping trips to save gas, while Wal-Mart's own bills for fuel and utilities were up, he said.
"In the United States, customers tell us they are most concerned about gas prices," Scott said in a prerecorded message. "This has been consistent every month this quarter."
Results were still in line with expectations and the company reiterated its guidance for the year.
But analysts questioned whether a third-quarter forecast on the low end of expectations meant the company could meet its target for the year. Wal-Mart's stock fell 73 cents, or 1.6 percent to $44.37 in late morning trading on the New York Stock Exchange.
The company forecast third-quarter earnings between 59 cents and 63 cents per share, compared with the average analyst estimate of 63 cents. It reiterated a full-year forecast of $2.88 to $2.95 per share, while analysts were predicting $2.92 per share.
"The quality of the quarter itself is kind of moderate. It does not look nearly as good as what we've seen from some of their peers as far as earnings and sales growth," said David Heupel, a portfolio manager for Minneapolis-based Thrivent Investment Management, with $2.5 billion in assets. The large-cap growth fund within Thrivent that Heupel manages sold its Wal-Mart shares this year.