The leading grocery chain
Wal-Mart Stores Inc. (
WMT
)
has come up with its largest solar installation Buckeye
distribution center near Phoenix in Arizona, which will generate up
to 5.3 million kilowatt hours of renewable energy per year. The
amount of energy generated has the capability of providing power to
more than 400 homes.
The distribution center has 14,000 solar panels on a 1,000,000
sq. feet building and parking canopies which will produce
approximately 30% of the center's energy needs.
The new facility at Buckeye distribution center is the second
solar project in Arizona by Wal-Mart and came just a year after a 2
megawatt project in Casa Grande, Arizona. The installation was done
in partnership with SolarCity, which installs, owns and maintains
solar power systems for Walmart.
The company has more than 180 renewable ongoing energy projects
around the world, capable of producing energy that can power 78,000
American homes annually. These renewable energy projects include
solar rooftops, micro-wind on parking lots, biodiesel generators
and fuel cells.
The company recently unveiled the addition of a 1 megawatt wind
turbine at its Red Bluff distribution center in California.
Wal-Mart also partnered with SolarCity in September 2011 to install
solar-power panels in more than 60 stores in California and
Colorado. SolarCity has installed solar power panels at Wal-Mart
stores in California, Arizona and Colorado.
Walmart is working towards its goal of achieving energy self
sufficiency via power generated from its renewable power generation
sources. We believe that Walmart has got a good opportunity to
expand and accelerate its solar power initiative program in the
U.S. In addition to creating jobs and protecting the environment,
these solar projects have also reduced costs for businesses by
lowering power bills.
Walmart's second quarter fiscal 2013 earnings of $1.18 were
ahead the Zacks Consensus Estimate by a penny and also increased 8%
year on year. Total revenue increased 4.5%, driven by positive same
store sales, which were driven by improved traffic and product
offerings.
We currently have a Neutral recommendation on Walmart, which
faces stiff competition from
Target Corp.
(
TGT
) and
Costco Wholesale Corporation
(
COST
). Wal-Mart currently has a short-term Zacks #3 Rank (Hold
rating).
COSTCO WHOLE CP (COST): Free Stock Analysis
Report
TARGET CORP (TGT): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
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