PARA - Walmart (WMT) Stock Drops 6% on Mixed Q1 Earnings Report
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- Walmart (NYSE:WMT) missed EPS estimates.
- It beat out revenue estimates for the quarter.
- The retailer also reduced its fiscal 2023 guidance.
Walmart (NYSE:WMT) stock isn’t doing so hot on Tuesday as the retail company’s shares drop on a mixed earnings report for the first quarter of fiscal 2023.
The bad news for WMT stock starts with its adjusted earnings per share of $1.30. That’s below the $1.48 per share that Wall Street was expecting from the company. However, it is an improvement over the $1.21 per share reported during the same time last year.
On the flip side of that, the retail giant’s revenue came in at $141.6 billion. That’s better than the $138.88 in revenue that analysts were expecting during the quarter. It’s also a 2.4% increase from the $138.3 billion reported in the same period of the year prior.
Another negative from the Walmart earnings report is a cut to its fiscal 2023 guidance. The company cites higher supply chain costs and pressure from inflation as reasons for its reduced outlook.
The worst of those guidance changes is the company’s adjusted EPS for fiscal 2023. It expects that to be down about 1%. Previously, the retailer was estimating an adjusted EPS increase in the mid-single-digits.
Doug McMillon, president and CEO of Walmart, said the following in the earnings report hitting WMT stock today.
“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. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.”
WMT stock is down 8.7% as of Tuesday morning.
Investors seeking out more stock market news are in the right place!
InvestorPlace has all the latest stock news that traders need to know about today! That includes what’s going on with Paramount (NASDAQ:PARA) stock, this morning’s biggest pre-market stock movers, and the most recent REE Automotive (NASDAQ:REE) stock news. You can find all of this at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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