Wal-Mart’s 4th-quarter earnings exceed analysts’ expectations

NEW YORK (AP) — Wal-Mart Stores Inc. said it’s still pulling shoppers away from its main rivals and enjoying a rise in customer traffic as the world’s largest retailer released better-than-expected fourth-quarter earnings Tuesday.

Shares of Wal-Mart rose more than 3 percent while the Dow Jones Industrials dropped more than 3 percent as investors grew more wary about the government’s stimulus plan.

Still, Wal-Mart is hardly immune from economic pressures. It issued a cautious earnings outlook as it feels the pinch from the stronger dollar in its important international business, a trend officials said could hurt profits over the next three quarters.

Wal-Mart appears to be benefiting from the slew of store liquidations from the likes of Circuit City Stores Inc. and Linens ’N Things.

“Our performance relative to competitors has been exceptionally strong in the fourth quarter and throughout the year,” said Mike Duke, Wal-Mart’s new chief executive, in a pre-recorded call to investors Tuesday. “We finished January strong and February is off to a good start,” added Duke, who succeeded Lee Scott as CEO this month.

Wal-Mart’s fourth-quarter profit fell 7.4 percent to $3.79 billion, or 96 cents per share, in the quarter ended Jan. 31, dragged down by the strong dollar and a charge from settling labor lawsuits. That compares with $4.096 billion, or $1.02 per share, a year earlier.

Analysts surveyed by Thomson Reuters had expected the company to earn 99 cents per share, excluding the after-tax charge for the settlement announced in December of 63 class-action wage and hour lawsuits. Excluding the impact of that, Wal-Mart earned $1.03 per share, which beat Wall Street earnings estimates.

Total sales rose to $109.12 billion from $107.34 billion.