Bearish
Walmart's stock drops 8% premarket as U.S. comp sales growth misses expectations
Walmart's stock experienced an 8% premarket decline following the release of its second-quarter earnings report, which revealed that U.S. comparable sales growth fell short of analyst expectations. Despite reporting adjusted earnings per share of $0.81, surpassing the consensus estimate of $0.74, the company's U.S. sales growth of 2.6% was below the anticipated 3.67%, marking the slowest growth in six years. This shortfall in U.S. sales growth overshadowed the positive earnings beat, leading to investor concerns.
Key points
- Walmart's U.S. comparable sales growth of 2.6% misses analyst expectations of 3.67%, the slowest in six years.
- Adjusted earnings per share of $0.81 beat the consensus estimate of $0.74, indicating strong profitability.
- Global eCommerce sales grew 23%, led by store-fulfilled pickup and delivery and marketplace, showing robust online performance.
- The company raised its full-year adjusted EPS guidance to $2.80 to $2.87, up from $2.75 to $2.85, reflecting confidence in future earnings.
Sources
AI-generated from public news sources. Not financial advice.
