CHICAGO, Feb. 23, 2011 /PRNewswire/ -- Zacks.com Analyst
Blog features: Wal-Mart Stores Inc. (NYSE: WMT), Office
Depot Inc. (NYSE: ODP), Macy's Inc. (NYSE: M),
R.R. Donnelley & Sons Co.
(NYSE: RRD) and Hormel Foods Corporation (NYSE: HRL).
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Here are highlights from Tuesday's Analyst Blog:
Wal-Mart Beats Estimates
Wal-Mart Stores Inc. (NYSE: WMT) reported
better-than-expected fourth-quarter 2011 results. The retailing
giant reported quarterly earnings of $1.41 a share reflecting a 11.9% increase over
the prior-year earnings of $1.26 a
share.
However, excluding the benefit of one-time items, earnings were
$1.34 a share, which was ahead of the
Zacks Consensus Estimate of $1.31, by
2.3%.
For the full year 2011, reported earnings came in at
$4.18 a share, while adjusted
earnings were $4.07. Both reported
and adjusted earnings were ahead of the Zacks Consensus Estimate of
$4.04 a share.
For the first quarter of fiscal 2012, Wal-Mart expects earnings
to be in the range of 91 cents to 96.
For fiscal 2012 earnings are expected to be in the range of
$4.35 to $4.50 a share.
Revenue Details
Wal-Mart's net sales for the fourth quarter recorded growth of
2.5% to $115.6 billion from
$112.8 billion in the year-ago
quarter. The expansion was primarily driven by a robust 8.9%
expansion in the International segment, which benefited from
favorable currency translations, coupled with a 4.4% growth in the
Sam's Club segment. However, sales at the Wal-Mart's U.S. segment
were down year-over-year, declining marginally by 0.5%.
Wal-Mart, widely regarded as a bellwether for the U.S. economy,
stated that U.S. same-store sales decreased 1.1% year-over-year,
while that for Sam's Club grew by 2.7%.
Office Depot Beats Estimates
Office Depot Inc. (NYSE: ODP) recently posted
better-than-expected fourth-quarter 2010 results. The quarterly
earnings of 9 cents a share portrayed
a substantial improvement from a loss of 6
cents in the prior-year quarter, and also fared better than
the Zacks Consensus Estimate of a loss of 3
cents.
The Zacks Consensus Estimate had remained stable prior to the
earnings release. On a reported basis, including one-time items,
Office Depot delivered a loss of 21
cents a share, as against a loss of 28 cents posted in the year-ago quarter.
Despite a low-single digit decline in the top-line, the office
supplies retailer was able to earn a profit on the heels of cost
containment. Cost of goods sold and occupancy fell 4.2%, store and
warehouse operating and selling expenses tumbled 5.5%, whereas
general and administrative expenses slipped 9% during the
quarter.
Office Depot's total revenue of $2,961.9
million fell short of the Zacks Consensus Estimate of
$2,975 million, and also dropped 3.4%
from the prior-year quarter due to soft demand for office supplies
in a sluggish economy. The improvement in the bottom-line
overshadowed the fall in the top-line.
Macy's Tops Consensus
Macy's Inc. (NYSE: M), one of the leading department
store retailers in the U.S., recently posted fourth-quarter 2010
results that topped the Zacks expectations.
The quarterly earnings of $1.59
per share outperformed the Zacks Consensus Estimate of $1.51, and rose 17.8% from $1.35 delivered in the prior-year quarter. The
quarterly earnings also surpassed management's guidance range of
$1.44 to $1.49 per share.
The Zacks Consensus Estimate rose by a penny prior to the
earnings release, with 3 out of 16 analysts covering the stock
raising their estimates and 1 analyst lowering the projection in
the last 30 days.
On a reported basis, including one-time items, quarterly
earnings came in at $1.55 per share
compared with $1.05 earned in the
year-ago quarter.
Macy's now expects fiscal 2011 earnings between $2.25 and $2.30, which remains ahead of the
current Zacks Consensus Estimate of $2.24. Following this a positive sentiment may be
palpable among the analysts, and we could witness a rise in the
Zacks Consensus Estimates in the coming days.
The company has been taking prudent steps to increase sales,
profitability and cash flows, which include integration of
operations, consolidation of divisions and customer-centric
localization initiatives. To help drive traffic, Macy's continues
to focus on price optimization, inventory management and
merchandise planning.
Donnelley 4th Quarter Beats
A leading provider of integrated communications and printing
solutions, R.R. Donnelley &
Sons Co. (NYSE: RRD) reported fourth quarter 2010 earnings, on
a non-GAAP basis, of 51 cents per
share, beating the Zacks Consensus of 46
cents per share. Earnings increased 10.9% year over year
from 46 cents reported in the
prior-year quarter.
Revenue
Revenues increased 4.8% year over year to $2.71 billion and was above the Zacks Consensus
Estimate of $2.66 billion. Fourth
quarter revenue growth was impacted by an unfavorable foreign
exchange and lower paper sales, which was fully offset by the
acquisition of Bowne.
Net revenues comprise U.S. Print and Related Services revenues
(74.8% of total sales), which increased 5.3% year over year to
$2.02 billion due to the acquisition
of Bowne, a rise in volume in logistics, financial print and
commercial print, partially offset by price declines across most
products and services, as well as lower paper sales.
International sales (25.2% of total sales) increased 3.5% to
$682.4 million, primarily attributed
to Bowne acquisition, partially offset by unfavorable foreign
exchange rates. International sales were driven by increasing
volumes in Asia and Latin America, partially offset by persisting
pricing weakness.
Hormel Tops Zacks Estimate
Hormel Foods Corporation (NYSE: HRL) posted strong
results for the first quarter of fiscal 2011 with an EPS of
55 cents compared with 41 cents in the corresponding period of fiscal
2010 based on year-over-year increases of 11.2% in revenue in the
first quarter.
During the quarter, Hormel reported EPS of 55 cents, up 34.1% from 41
cents in the year-ago quarter and also up from the Zacks
Consensus Estimate of 43 cents. Net
income reached $148.8 million from
$111.2 million in the first quarter
of 2010. The increase was driven by revenue growth coupled with
cost containment.
Net revenues were $1,921.6
million, up 11.2% from $1,727.4
million in the corresponding period of the previous year and
$1,850 million according to the Zacks
Consensus Estimate. This increase is attributable to increased
revenues in Jennie-O Turkey Store and Refrigerated Foods
segments.
Revenues from Jennie-O Turkey Store spiked 13.9% and
Refrigerated Foods shot up by 13.3% due to the higher demand for
food products based on the gradual improvement in economic
conditions. Revenues from Grocery Products grew 5.8% and Specialty
Foods grew 2.4% year over year.
The Refrigerated Foods segment finished the quarter with a 37.0%
increase in operating profit and Jennie-O Turkey Store witnessed a
strong improvement of 121.9% in profit based on the 12.0% and 10.4%
year over year, respectively based on higher raw-material
costs.
Selling, general and administrative (SG&A) expenses based on
revenues declined by 80 basis points to reach $145.2 million.
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