Investing.com - Dow component Wal-Mart (N:WMT) reported better than expected third quarter earnings early on Tuesday, despite missing on revenue figures, sending its shares higher in pre-market trade.
U.S. retail giant Wal-Mart said earnings per share came in at $1.03, above expectations for earnings of $0.98 cents per share and compared to earnings of $1.15 in the same period a year earlier. Currency negatively impacted earnings by $0.04 cents per shares.
The company’s third quarter revenue totaled $117.41 billion, missing forecasts for revenue of $117.98 billion and down from sales of $119 billion in the third quarter of the previous year. On a constant currency basis, total revenue was $122.4 billion.
Walmart International net sales were $29.8 billion. On a constant currency basis, sales reached $34.7 billion, led by Mexico and Canada.
Comp sales at Walmart U.S. were positive for the fifth consecutive quarter, up 1.5%. Traffic increased 1.7%. Customer experience scores continued to strengthen. Neighborhood Market comps increased approximately 8%, with strong growth from newer stores.
E-commerce sales and gross merchandise value, or GMV, globally increased approximately 10% on a constant currency basis. Growth was pressured by challenges in key international markets.
Walmart updated full year earnings guidance to a range of $4.50 to $4.65, from a previous range of $4.40 to $4.70. This range includes Q4 EPS guidance of $1.40 to $1.55.
Following the release of the report, Wal-Mart shares rose 2.38%, or $1.38, in pre-market trade to $59.25 from Monday's closing price of $57.87.
Meanwhile, the outlook for U.S. equity markets was upbeat. The Dow futures pointed to a gain of 86 points, or 0.49%, at the open, the S&P 500 futures indicated a rise 9 points, or 0.42%, while the Nasdaq 100 futures increased 21 points, or 0.44%.