UPDATE: Citi Color On WMT 4Q

Citi, which raised its PT on Wal-Mart Stores Inc. WMT, is providing some color on the company's 4Q. “Although WMT's 4Q10 EPS were better-than-expected, this was the quarter that Walmart U.S. same-store sales were long expected to return to positive territory (vs. the (-1.8)% reported Walmart U.S. comp),” Citi writes. “We were disappointed to learn that some pricing and merchandising issues are ‘deeper than initially expected' and that it will take time for WMT to get back to its EDLCEDLP mission and to deliver positive SSS. “WMT reported 4Q10 EPS from continuing operations of $1.34 (excluding a $0.07 per share tax benefit), above our estimate and consensus of $1.31, above guidance of $1.29-$1.33, and vs. $1.21 last year. Better-than-expected gross margin improvement (+1 bps vs. our (-6) bps estimate), a slightly lower-than-expected tax rate (34.0% vs. our 34.8% estimate), and greater-than-expected share repurchases ($3.8 Bn vs. our $2.0 Bn estimate) offset lower-than-expected sales at Walmart U.S.” Wal-Mart Stores Inc. closed Tuesday at $53.67.