Why Walmart Shares Are Falling Today

Walmart Inc WMT shares are trading lower Tuesday morning after the company reported mixed financial results and lowered earnings guidance.

Walmart said first-quarter revenue increased 2.4% year-over-year to $141.6 billion, which beat the $138.88-billion estimate, according to data from Benzinga Pro. The company reported quarterly adjusted earnings of $1.30 per share, which missed the estimate of $1.48 per share.

Walmart said its U.S. comparable sales grew 3% year-over-year, while e-commerce sales grew 1%.

"Bottom line results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected," said Doug McMillon, president and CEO of Walmart.

Walmart cut its second-quarter earnings guidance from a low to mid single-digit range. The company now expects earnings to be "flat to up slightly."

See Also: Walmart Struggles With Store Manager Crisis Despite Attractive Pay; Wants To Attract Job Seekers

WMT Price Action: Walmart shares have traded between $132.01 and $160.77 over a 52-week period.

The stock was down 7.13% at $137.62 at press time.

Photo: courtesy of Walmart.