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Wal-Mart Q4 Earnings May Fall Short Of Estimates

Friday January 31st, 2014 - 2:14PM

Wal-Mart Stores, Inc. announced that its earnings for the fourth quarter and full year may come in below guidance. The retailer noted that it would release its detailed earnings report on the fourth quarter and full year on February 20.

Prior to the announcement, Walmart pegged fourth quarter diluted earnings per share from continuing operations at $1.50 to $1.60, which included a 10 cents per share impact from two discrete items. Without the one-time items, Walmart had given an underlying EPS guidance range of $1.60 to $1.70. For the full year, the company expected to deliver EPS of $5.01 to $5.11, or $5.11 to $5.21 without counting the discreet items.

“We now anticipate that our underlying EPS for the fourth quarter of fiscal 2014 will be at or slightly below the low end of our range of $1.60 to $1.70,” said Charles Holley, Wal-Mart CFO in a statement on the guidance change. “For the full year, we expect underlying EPS to be at or slightly below the low end of our range of $5.11 to $5.21.”

Discrete items involved previously announced lay offs at Sam’s Club as well as initiatives in Brazil, China and India.