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Tuesday, November 14, 2006

Wal-Mart Reacting Better Than Target on Retailer Earnings

This morning we got to see competing earnings reports from retail giants Wal-mart (WMT) and Target (TGT). In short, WMT is trying to hang on, and TGT is still growing. The same-store-sales (s-s-s) are also forecast to be up.

Wal-Marts EPS was 11% higher than Q3 2005 at $2.6 Billion, or $0.63 per share ($0.62 after tax ruling). Revenues were $84.5 Billion. Analysts were expecting $0.59 and $84.5B. The company also guided next quarter EPS $0.88 to $0.92 and Fiscal EPS $.85 to $2.89e. The retail behemoth also put Q4 s-s-s at +1% to +2%, which is only a week after it forecast flat s-s-s in November.

Target (TGT) posted earnings a 14% rise to $506 million and $0.59 EPS on revenues of $13.57 Billion. Analysts were looking for $0.55 and $13.58B. Target also maintained estimates November s-s-s +4% to +7%.

TGT shares are up 2.5% at $59.25 in pre-market activity; 52-week trading range is $44.70 to $60.34.

WMT shares are now up 3.5% at $47.95 in pre-market activity; 52-week trading range $42.31 to $52.15.

While Target (TGT) looked better overall and on the surface, Wal-Mart (WMT) was actually better as far as the bar having been lower and its relation to its 52-week highs. That is why WMT is up mor ethan TGT in pre-market activity.

Jon C. Ogg
November 14, 2006
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