Home Depot, Wal-Mart Post Strong Profits

Wal-Mart Stores Inc., the largest U.S. retailer, on Tuesday reported strong earnings on improved sales and profit margins for both its fiscal fourth quarter and the full year.

Meanwhile, Home Depot Inc., operator of home improvement stores, said its earnings rose 20% in the fiscal fourth quarter and full year as a strong economy and low mortgage rates boosted sales.

Bentonville, Ark.-based Wal-Mart earned $1.29 billion, or 57 cents a diluted share, in the fourth quarter, compared with $1.1 billion, or 48 cents a diluted share, a year earlier. Sales rose 15% to $35.7 billion.

The discount retailer was expected to earn 55 cents a diluted share, according to analysts surveyed by IBES International Inc.

For the year, Wal-Mart earned $3.53 billion, or $1.56 a diluted share, compared with $3.06 billion, or $1.33 a diluted share. Sales rose 12% to $118 billion.

“With the momentum we have, I am confident that fiscal 1999 will be another record year,” Chief Executive David Glass said.

Wal-Mart stock rose 69 cents a share to $46.88 on the New York Stock Exchange.

Home Depot said it earned $307 million, or 41 cents a diluted share, in the fourth quarter, up from $251 million, or 34 cents a diluted share, a year ago.

The results met the expectations of 22 analysts surveyed by IBES.

Sales rose 16% to $5.73 billion.

For the year, Home Depot earned $1.16 billion, $1.55 a diluted share, compared with $938 million, $1.29 a diluted share, a year ago. Sales were $24.2 billion, up from $19.56 billion. The 1997 results include a $104-million charge for settlement of suits. Home Depot shares fell $3.44 to $65.13 on the NYSE.