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Wal-Mart drops 1% in pre-market trade after cutting guidance

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Investing.com -

Investing.com - Dow component Wal-Mart reported better-than-expected fourth quarter earnings, despite missing on revenue figures, it announced on Thursday, sending its shares lower in pre-market trade.

U.S. retail giant Wal-Mart said adjusted earnings per share were $1.61 in the fourth quarter of 2014, above expectations for adjusted earnings of $1.54 per share.

Reported EPS was $1.53, which includes a negative impact of $0.08 per share from certain discrete items.

The company's fourth quarter revenue totaled $131.6 billion, missing forecasts for revenue of $132.3 billion. Currency exchange rate fluctuations negatively impacted revenue by approximately $2.6 billion.

Wal-Mart U.S. comp sales increased 1.5% for the 13-week period ended January 30, 2015.

The company issued full fiscal 2016 EPS guidance range of $4.70 to $5.05, and a first quarter forecast of $0.95 to $1.10.

"We had a good fourth quarter to close out our fiscal year, with underlying EPS of $1.61. Walmart U.S. delivered better than expected comp sales. Sam's Club had its best performance of the year, and Walmart International had solid sales and profitability," said Doug McMillon, Wal-Mart Stores (NYSE:WMT), Inc. president and CEO.

Following the release of the report, Wal-Mart shares declined 0.95% in pre-market trade to $85.47 from Wednesday's closing price of $86.29.

Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures pointed to a loss of 0.15% at the open, the S&P 500 futures dipped 0.2%, while the Nasdaq 100 futures tacked on 0.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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