Investing.com - Dow component Wal-Mart (N:WMT) reported weaker than expected fourth quarter revenue early on Thursday and said it expects virtually no sales growth this year, sending its shares lower in pre-market trade.
U.S. retail giant Wal-Mart said fourth quarter revenue totaled $129.7 billion, missing forecasts for revenue of $130.6 billion and down from sales of $131.6 billion in the fourth quarter of the previous year.
Adjusted earnings per share came in at $1.49, above expectations for earnings of $1.46 cents per share and compared to earnings of $1.15 in the same period a year earlier.
Wal-Mart International net sales were $32.7 billion on a reported basis. On a constant currency basis, net sales were $37.4 billion, an increase of 3.3%, led by strength at Walmex and in Canada.
Comp sales at Wal-Mart U.S. were positive for the sixth consecutive quarter, up 0.6%, driven by the fifth consecutive quarter of positive traffic.
Globally, on a constant currency basis, e-commerce sales and GMV increased approximately 8%. Growth was pressured primarily by challenges in key international markets.
For fiscal year 2017, net sales growth is now expected to be relatively flat, which compares to the previous estimate for growth of 3%-to-4% on a constant currency basis. This change reflects the impact from recently announced store closures globally, as well as the continued strengthening of the U.S. dollar.
In addition, the retailer said it is raising its annual dividend to $2.00 a share from $1.96. The dividend will be paid in four quarterly installments of 50 cents a share.
Following the release of the report, Wal-Mart shares fell 4.13%, or $2.73, in pre-market trade to $63.40 from Wednesday's closing price of $66.13.
Meanwhile, the outlook for U.S. equity markets was upbeat. The Dow futures pointed to a gain of 75 points, or 0.45%, at the open, the S&P 500 futures indicated a rise 8 points, or 0.38%, while the Nasdaq 100 futures increased 23 points, or 0.55%.