Walmart Inc.WMT
▼ NegativeCapitalrelevance
Soft Q3 revenue guidance despite Q2 beat and raised EPS
Impact on stocks 1
Consumer Staples
Walmart Inc.Walmart Beats Q2 Estimates but Shares Fall on Soft Guidance
Earnings
Walmart's second-quarter results beat Wall Street's revenue and adjusted profit expectations, yet the stock fell as management issued a cautious third-quarter revenue outlook. Revenue reached $187.9 billion, surpassing the $186.8 billion estimate, while adjusted EPS of $0.81 topped the $0.74 forecast. However, the company guided third-quarter revenue to $185.6 billion at the midpoint, below the $188.3 billion analysts expected, though it raised full-year adjusted EPS guidance to $2.84. CEO John Furner called it the best second quarter in three years, citing strength in e-commerce and membership, but acknowledged softer health and wellness sales due to regulatory pricing changes. Analysts probed management on sustaining price investments, the impact of fuel prices, and the outlook for the health and wellness category, with executives emphasizing careful tracking of returns and the growing contribution of high-margin platform businesses.
Walmart Inc.Soft Q3 revenue guidance despite Q2 beat and raised EPS