Walmart 1beats quarterly earnings, but 2quarterly guidance disappoints
Walmart 1quarterly adjusted EPS of 66 cents and revenue of 1,778 billion dollars were better than expected, but 2quarterly guidance fell short of investor expectations. Management warned that retail price inflation could rise further if cost pressures persist.
Walmart 1reported quarterly adjusted EPS of 66 cents and revenue of 1,778 billion dollars. The company said quarterly results exceeded its internal expectations. However, management said it was keeping a close watch on the cost environment ahead.
The company 2set quarterly EPS guidance at 72~74 cents. The EPS range provided fell short of market estimates. The chief financial officer warned that if rising costs persist, price inflation in the retail sector could increase further.
Walmart 2set quarterly revenue guidance at 1,828 billion to 1,846 billion dollars. The company said this revenue range was below analyst estimates. The revenue guidance is expected to serve as a gauge of future performance.
Market consensus was 1,864 billion dollars. Analyst Robert Drbul maintained a Buy rating on Walmart. He projected that 2028by then, operating profit growth would outpace revenue. Drbul pointed to high-margin revenue streams, including advertising, memberships, and fulfillment, as growth drivers.
Management’s warning and analysts’ long-term outlook have been presented at the same time. The company’s announcement points to weaker near-term guidance. Investors need to check the next quarter’s results and any changes to guidance.
Sources: Benzinga
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