Stocks to watch: Wal-Mart, Home Depot
The discount chain's quarterly results fall short of expectations, while the home improvement retailer beats estimates.
By Joseph Woelfel, TheStreet
Updated at 9:38 a.m. ET
Wal-Mart (WMT), the world's biggest retailer, posted a profit of $3.34 billion, or 97 cents a share, excluding certain items, for the quarter that ended in October. Analysts surveyed by Thomson Reuters had expected the company to earn 98 cents.
Home Depot (HD) said its third-quarter net income rose 12% to $934 million, or 60 cents a share, compared with $834 million, or 51 cents per share, in the year-ago period. Sales climbed 4.4 percent to $17.3 billion. Analysts surveyed by Thomson Reuters expected earnings of 59 cents a share on revenue of $17.1 billion. The company also raised its dividend by 16 cents to 29 cents a share.
Lowe's (LOW), Home Depot's main competitor, said Monday that third-quarter earnings fell 44% on charges related to store closings.
Dell (DELL) is expected by analysts to post a profit of 47 cents a share on revenue of $15.66 billion in the third quarter, after the market close on Tuesday. Analysts and investors will find out how the PC maker has been affected by shortages of hard-disk drives because of heavy flooding in Thailand.
Staples (SPLS), reported third-quarter net income of $326.4 million, or 47 cents per share, up from $288.7 million, or 40 cents, a year earlier. Revenue of $6.57 billion was higher than $6.54 billion from a year ago, but was less than analysts' forecasts for $6.71 billion. Same store sales dropped by 1%. Staples said it expects full-year earnings of $1.35 to $1.39 per share, with the high-end lowered from $1.45 in previous guidance.
TJX (TJX) said its third-quarter sales increased 5% to $5.8 billion and same-store sales rose 3%. Net income for the third quarter was $406 million, or $1.06 a share, up 15% from a year earlier. The results were in line with the analyst consensus.
Urban Outfitters (URBN) said gross margin in the third quarter declined to 35.4% from 41.1%, in part because of sales price reductions at Anthropologie and Urban Outfitters. Urban Outfitters had previously announced a management shakeup to help the struggling Anthropologie brand.
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3 stocks will be in the spotlight Thursday as investors try to make sense of the numbers from the sector.
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