Wal-Mart's Pain Is Competition's Gain
The world's biggest retailer is losing market share on multiple fronts, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Traders started yesterday worrying that sluggish sales at Wal-Mart (WMT) were a harbinger of trouble across the retail sector.
Before the New York markets opened, the world’s largest retailer reported third-quarter earnings of $1.08 a share, a penny a share above Wall Street projections, but disappointing revenue of $113.93 billion, short of the $114.03 billion Wall Street consensus. Revenue climbed just 3.4% year-over-year, and same-store sales were up just 1.5%.
Looking ahead, the company guided analysts to earnings per share of $1.53 to $1.58 in the fourth quarter, versus the consensus projection of $1.57. Full 2013 earnings, the company said, would be $4.88 to $4.93 a share versus the $4.93 Wall Street consensus.
On that news Wal-Mart shares opened at $69.66, down from the previous close at $71.31. As of the close in New York, the shares had dropped to $68.72, down 3.63% for the day.