Wal-Mart Reports Disappointing Earnings: Ahead of the Ticker

NEW YORK ( TheStreet) -- Wal-Mart ( WMT) reported disappointing fiscal first-quarter earnings and forecast a challenging second quarter.

For the quarter, the retailer reported a profit of $3.78 billion, or $1.14 a share, up from $3.74 billion, or $1.09 a share, a year ago.

Sales rose 1% to $113.43 billion.

The results came in below Wall Street expectations for earnings of $1.15 a share on revenue of $115.78 billion.

Wal-Mart reported a 1.4% drop in revenue at its namesake business for stores open at least year -- that marks the first drop in about a year and a half. Analysts expected revenue at Wal-Mart stores to remain unchanged.

The company cited a payroll tax increase, delayed tax refunds and bad weather for the worse-than-expected results.

Looking ahead, the retailer expects earnings per share to be in the range of $1.22 to $1.27 in the current quarter, below analysts' expectations of earnings of $1.29 a share.

Wal-Mart represents nearly 10% of nonautomotive retail spending in the U.S., and thus is considered an economic bellwether.

Cisco Systems ( CSCO) reported a higher-than-expected earnings and revenue for the fiscal third quarter on Wednesday.

The computer-networking equipment maker reported adjusted earnings of 51 cents a share on revenue of $12.2 billion, beating analysts' estimates of 49 cents a share on revenue of $12.18 billion.

Shares of Cisco surged 12% Thursday morning on the results.

Cisco forecast current-quarter earnings per share of 50 to 52 cents excluding items, in line with expectations. The company expects revenue to grow 4% to 7% from the same quarter a year ago.

CEO John Chambers said, "We are managing the business to account for a continued slow steady recovery on a global basis."

Google ( GOOG) Wallet is integrating with Gmail to allow users to send money through emails.

Gmail users can now attach a payment to an email, much as they would attach a document, but they must be signed up for Google Wallet in order to do so. Users can send money via debit or credit cards or directly from a bank account. If a user links a bank account to Google Wallet, transactions are free. Using a debit or credit card will add a 2.9% transaction fee.

It will be free to receive money, regardless of the form of payment the sender used. Google is rolling out the new feature over the next few months to users across the U.S. over 18 years old. For now, it will only be available on a desktop.

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-- Written by Brittany Umar.
Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.