© Walmart
Walmart (NASDAQ:WMT) shares fell 2% in premarket trading after the retail giant reported first-quarter revenue ahead of analyst expectations but issued earnings guidance that came in below Wall Street forecasts.
The company generated revenue of US$177.8 billion during the quarter, surpassing analyst estimates of US$174.83 billion and rising 7.3% compared with the prior year.
Adjusted earnings per share totaled US$0.66, in line with market expectations.
Walmart said global e-commerce sales increased 26% during the quarter, while its advertising business expanded 37%.
However, operating income growth of 5.0% was negatively affected by approximately 250 basis points due to higher fuel expenses tied to distribution and fulfilment operations.
Investor sentiment weakened after the company released softer-than-expected guidance.
For the second quarter, Walmart forecast adjusted earnings per share of between US$0.72 and US$0.74.
The midpoint of US$0.73 came in below analyst expectations of US$0.75.
For fiscal 2027, Walmart reaffirmed full-year adjusted EPS guidance of US$2.75 to US$2.85.
The midpoint of US$2.80 was also below the analyst consensus forecast of US$2.92.
“Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” said John Furner, President and CEO of Walmart.
Within the company’s core U.S. business, comparable sales increased 4.1%, supported by a 3.0% rise in customer transactions.
U.S. e-commerce sales climbed 26%, driven by growth in store-fulfilled delivery services, advertising and the company’s online marketplace platform.
Sam’s Club U.S. recorded comparable sales growth of 3.9%, while Walmart International delivered net sales growth of 10.1% on a constant-currency basis.
The company also highlighted continued strength in its advertising and membership businesses.
Advertising revenue at Walmart U.S. rose 36%, while membership fee revenue increased 17.4% globally.
For the second quarter, Walmart expects net sales growth of between 4% and 5% in constant currency terms.
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This article was written by the editorial team at InvestorsHub/ADVFN and is provided for informational purposes only. In some cases, editorial staff may use artificial intelligence–based tools to assist in the research, drafting, or editing of content, under human review and oversight. This article does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are based on publicly available information believed to be reliable at the time of publication, but accuracy or completeness is not guaranteed. Readers should conduct their own independent research and consult a qualified financial professional before making any investment decisions.
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Walmart shares slip after cautious outlook overshadows revenue beat (WMT)
Walmart (NASDAQ:WMT) shares fell 2% in premarket trading after the retail...