Walmart shares dropped nearly 10% in a week despite beating earnings and raising full-year guidance, as investors focused on a weak third-quarter outlook and higher costs. The retailer reported adjusted EPS of $0.81 versus a $0.7413 estimate, revenue up 5.94% to $187.94 billion, and lifted full-year sales growth guidance to 4% to 5% from 3.5% to 4.5%. However, Walmart guided Q3 adjusted EPS to 62 to 64 cents, below expectations, and flagged more than $2 billion in incremental fuel-related costs, while raising capex to roughly 4% of net sales. Michael Zakkour of 5 New Digital argued the selloff is sentiment-driven and that Walmart, Target, and other discount retailers will have strong holidays as consumers trade down. Target's comparable sales grew 3.8% with traffic up 3.6%, and its stock is up 73.84% year to date, while Home Depot and Lowe's are each down roughly 14% over the past year despite positive comps.
Walmart Inc.Stock fell 10% despite earnings beat and raised guidance due to weak Q3 outlook and higher costs.
Target CorporationComparable sales grew 3.8% with traffic up 3.6%, and stock up 73.84% YTD.
The Home Depot Inc
Lowe's Companies Inc
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