Retailers Swing in Opposite Directions: Wal-Mart, Home Depot

[Stocks-to-Watch]

Two massive retailers reported earnings on Tuesday, and their fortunes diverged.

Wal-Mart Stores (WMT) fell 1.5% in pre-market trading after missing third quarter earnings expectations. The world’s largest retailer posted 97 cents of EPS, a penny below expectations. The miss could sap the stock’s recent momentum — shares were up about 6% over the past month, as the company has projected same-store sales growth after a stretch of flat-to-down quarters. Same-store sales rose 1.3% in the most recent quarter.

Home Depot (HD) rose 1.5% in pre-market trading after the company reported 60 cents of EPS, 2 cents better than expectations. Hoem Depot’s continued to outpace its competitors by a long shot. Global same-store sales rose 4.2%, while domestic same-store sales rose 3.8%. Home Depot also raised its full-year earnings guidance to $2.38 per share from $2.34. Analysts had been projecting $2.35. Home Depot also raised its quarterly dividend by 16% to 29 cents per share.



Original Article Source by Barrons.com