Walmart reports Q3 EPS of $1.08, reaffirms top end of full-year EPS guidance; Company is well positioned for Q4 holidays

Wal-Mart Stores, Inc. reported financial results for the quarter ended Oct. 31, 2012.

• Wal-Mart Stores, Inc. (Walmart) reported third quarter diluted earnings per share from continuing operations of $1.08, within guidance of $1.04 to $1.09. This was an 11.3 percent increase from the $0.97 per share reported for the third quarter last year.
• The company updated its full year earnings guidance, narrowing the range by five cents to $4.88 to $4.93. The top of the range remains unchanged from the guidance provided last quarter, when the company tightened the range and increased it by a penny.
• Net sales were $113.2 billion, a 3.4 percent increase over last year. Currency exchange rate fluctuations negatively impacted net sales by approximately $1.7 billion. Without the currency impact¹, net sales would have been $114.9 billion, a 4.9 percent increase.
• Walmart U.S. comparable (“comp”) store sales increased 1.5 percent in the 13-week period ended Oct. 26, 2012.
• Sam's Club comp sales, without fuel, increased 2.7 percent for the same 13-week period.
• Walmart International grew net sales 2.4 percent to $33.2 billion; on a constant currency¹ basis, net sales would have increased 7.6 percent to $34.8 billion.
• The company leveraged operating expenses for the quarter.
• Consolidated operating income was $6.1 billion, up 4.0 percent from last year, and grew faster than sales.
• Walmart generated free cash flow¹ of $7.0 billion for the nine months ended Oct. 31, 2012.
• Return on investment¹ (ROI) for the trailing 12 months ended Oct. 31, 2012 was 18.0 percent.
• Year to date, the company returned $8.7 billion to shareholders through dividends and share repurchases.