Walmart Shares Fall After Q1 Earnings, Lowering Full Year EPS Outlook

Walmart Inc WMT reported first-quarter FY23 sales growth of 2.4% year-on-year to $141.6 billion, beating the consensus of $138.88 billion.
Walmart U.S. comp sales grew 3.0% and 9.0% on a two-year stack basis.
Sam’s Club comp sales increased 10.2% and 17.4% on a two-year stack basis.
The operating margin was 3.7%, and operating income for the quarter declined 23% to $5.3 billion.
The company held $11.8 billion in cash and equivalents as of April 30, 2022.
Adjusted EPS of $1.30 missed the analyst consensus of $1.48.
“Bottomline 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 CEO Doug McMillon.
Outlook: Walmart sees FY23 EPS to decline 1% (prior view increase mid-single-digits).
The company currently sees FY23 sales to grow 4% in constant currency (prior view 3% in CC).
Walmart anticipates Q2 sales to increase by over 5% and EPS to be flat to up slightly.
Price Action: WMT shares are trading lower by 7.33% at $137.35 in premarket on the last check Tuesday.
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