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Friday, November 16, 2012

News Recap: Wal-Mart Stores Inc. (NYSE:WMT), Viacom Inc. (NASDAQ:VIAB)


Viacom posts higher profit in the fourth quarter

Viacom, Inc.(NASDAQ:VIAB) has reported a 13 percent rise in its net income in the fourth quarter, while the full year’s earnings dropped 7 percent.

Earnings for the period were $650 million or $1.26 a share.  Last year, the company had earned $576 million or $1.00 a share.  If onetime items are excluded, the company’s earnings work out to $1.21 a share, higher than analysts’ estimates of $1.17 a share.

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Revenue dropped 17 percent to $3.36 billion, lower than Street expectations of $3.41 billion.
The company’s Paramount Pictures movie studio division saw fall in revenue by 39 per cent, while its cable TV network revenue remained unchanged.

Revenue from advertisements dropped, although fees received from cable and satellite companies increased.
For the full year, earnings fell by nearly 7 percent to $1.9 billion or $3.69 a share.  Revenue dropped 7 percent to $13.9 billion.

Shares of Viaocm ended higher by 3% to $49.23.

Wal-Mart betters profit estimates

Retail giant Wal-Mart Stores, Inc.(NYSE:WMT) has also declared its results for the quarter.  While profits have improved, the company has lowered its guidance.

The net income for the period was $3.63 billion or $1.08 a share.  The company had earned $3.33 billion or 96 cents a share in the prior year period.  Revenue for the period ending October 31 was $113.93 billion, significantly higher than last year’s $110.23 billion.  Sales figures were dragged down by exchange rate fluctuations.

Excluding onetime items, the retailer would have earned $1.07 a share on $114.96 billion revenue.

Sales at stores open for at least a year rose 1.5 percent.  This excludes stores which had opened or closed in the past one year.  Analysts had expected same store sales to jump 4.6 per cent.

Wal-Mart has also narrowed its outlook for the full year.  It now expects to make between $4.88 and $4.93 a share.

Shares of WMT ended lower by 3.50% in Thursday’s session.

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