Eldon, Missouri – (StockNewsDesk) – 11/13/2014 — Largest retail chain in the United States, Walmart, reported its third-quarter earnings today. The profits of the company impressed investors; however, the revenue of the company couldn’t surpass the Street expectations. Earnings came in at $1.15 a share, compared to estimates of $1.12 a share. Revenue missed the estimates marginally. Walmart reported sales of $118.01 billion, compared to the Street’s expectation of $118.32 billion. Shareholders cheered the results as a result of which shares of the company jumped more than 3% during pre-trading. The share price of the company was trading around $81.66 a share. Walmart also provided guidance that beat the Street estimates. Walmart expects Earnings per Share (EPS) in the range of $4.92 and $5.02 compared to that of $4.99 a share estimated by analysts.
The store sales helped the company boost profits and above all beat the estimates. The US same-store sales grew 0.5%. The same-store sales were primarily helped by the increase in sales of Walmart’s “Neighborhood Market format.” Comp Sales of “Neighborhood Market Format” grew 5.5%. The growth of 0.5% ended the company’s seven-month negative growth. Internet sales rose 21%.
Walmart Hopes on Holiday Season
Walmart hopes to do well during the upcoming holiday season. The retail giant is planning to offer deals from Thanksgiving Day through Cyber Monday. Retail companies like Target and Sears are also expected to plan such an event. Walmart has already started pulling up its socks by matching prices with its major competitors such as Target, Best Buy and Amazon. On the back of expectations that revenue registers will ring above expectations for the fourth quarter, Walmart expects EPS in the range of $1.46 and $1.56 a share.
During the holiday season from Thanksgivings Day through Cyber Monday, the company plans to sell many products at attractive prices. On the Thanksgiving Day, products include Xbox One bundle for $329 with a gift card of $30. Xbox One would include Halo Master Chief Collection and Halo Guardians. Another offer would be the sale of Xbox One at $379 online. This will include a free one-year subscription with a game of the user’s choice. On Black Friday, Walmart would be pricing these products at $99.