The retail earnings train of sub-mediocrity — led off Monday by the misleading beats of J.C. Penney (NYSE:JCP) and Lowe’s (NYSE:LOW) — continued Tuesday with the lackluster report of big-box giant Wal-Mart (NYSE:WMT).
The headline news was Wal-Mart breaking a two-year-plus streak of declining U.S. same-store sales, posting 1.3% gain in the measure — more than analysts’ expectations of 0.3%. The company also reported a 5.7% increase in its Sam’s Club store sales, besting estimates of 4.9%. However, Wal-Mart’s actual earnings were a mixed lot.
The company watched its profit margins fall across Wal-Mart and Sam’s Club stores, as well as its international division. It reported a profit of $3.34 billion, compared to $3.44 billion in the third quarter of 2010. Wal-Mart’s 97 cents per share were two cents better than last year but fell a penny short of Wall Street expectations.
Moreover, the company released disappointing guidance, with a $1.42-$1.48 range for the fourth quarter against analysts’ expectations of $1.45 per share, and full-year outlook of $4.45 to $4.51, slightly less than the estimated $4.50. WMT shares finished the day down about 2.4% at $57.46.
Going against the grain of its usual sob song was Research In Motion (NASDAQ:RIMM), which saw its shares gain about 5% on Tuesday as it launched a pair of new phones for its BlackBerry 7, the latest version of its current operating system.
The BlackBerry Bold 9790 uses a touchscreen system but also features a keyboard, while the Curve 9380 is the first Curve model to rely solely on a touchscreen, and both will feature 5-megapixel cameras. The pair of phones will continue to use the BlackBerry legacy operating system — a fact that might hinder sales, considering the company has announced it will be switching to a new operating system (BBX) next year.
Nonetheless, the new phones are expected to carry RIM through the holiday season and provided at least a one-day burst, with RIMM shares finishing Tuesday up at $19.13.
Three Up
- Green Mountain Coffee Roasters (NASDAQ:GMCR): Up 12.98% ($5.47) to $47.61.
- Red Hat (NYSE:RHT): Up 5.02% ($2.52) to $52.72.
- Cliffs Natural Resources (NYSE:CLF): Up 4.79% ($3.36) to $73.45.
Three Down
- Dish Network (NASDAQ:DISH): Down 5.36% ($1.37) to $24.19.
- Western Digital (NYSE:WDC): Down 4.9% ($1.29) to $25.05.
- LinkedIn (NYSE:LNKD): Down 4.62% ($3.63) to $74.86.
As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks. Check out our list of previous IP Market Recaps.
