Walmart beat revenue estimates last quarter, but shares fell more than 7% after it issued lower-than-expected guidance amid high fuel prices.
Revenue was up 7.9% year-over-year to US$177.75 billion, above LSEG-compiled estimates of $174.98 billion. Earnings per share were $0.66, rising from $0.61 and in line with estimates.
“Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” said Walmart president and CEO John Furner.
“Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions. It’s a disciplined approach that’s helping us grow the business and strengthen returns.”
Comparable sales growth was 4.1%, in line with estimates but slowing from 4.5% one year ago. Global e-commerce sales were up 26%, and membership fee revenue rose 17.4%.
Operating income increased 5% to $7.49 billion, though it said this included a 250 basis point hit from high fuel costs in distribution and fulfillment.
The company’s outlook for the current quarter includes net sales growth of 4.0-5.0% and earnings per share of $0.72-0.74. This is below estimates of $0.75.
Rising fuel prices’ pressure on consumers will likely worsen in the current quarter as the effects of tax refunds end, Walmart CFO John David Rainey told CNBC.
Walmart also maintained its full-year guidance of 3.5-4.5% in net sales growth and earnings per share of $2.75-2.85.
Shares in Walmart (NASDAQ: WMT) closed 7.3% lower at $121.34, but rose 0.5% after-hours. Its market capitalisation is $967.20 billion.
