Walmex Declines to Six-Month Low After Missing Profit EstimatesMichelle F. Davis
Wal-Mart de Mexico SAB fell to a six-month low after the company reported a fourth straight quarter of profit that trailed analysts’ estimates and said its chief executive will retire.
Shares of Latin America’s largest retailer slid 2.6 percent to 31.69 pesos at 1:21 p.m. in New York to the lowest price since April 7. The stock was the second-worst performer on Mexico’s benchmark IPC index, which gained 0.1 percent.
Walmex’s net income fell 5 percent in the three months ended in September to 4.87 billion pesos ($359.7 million), trailing the average estimate of 5.31 billion pesos among analysts surveyed by Bloomberg. The company cited in an Oct. 17 earnings call “soft performance” from Sam’s Club and also said that day that Chief Executive Officer Scot Rank will retire at the beginning of 2015 after overseeing the company for five years. It didn’t identify Rank’s successor.
“We are cautious with respect to Walmex’s outlook toward year-end in light of a possible slowdown in Mexico’s consumption recovery and continuing negative results from Sam’s in a highly competitive environment,” Banco Santander SA analysts led by Reinaldo Santana wrote in a research note.