Walmart falls on guidance despite beating revenue estimates

Investing.com -- Walmart Inc. (NASDAQ: WMT) reported first-quarter results that exceeded revenue expectations but issued guidance below analyst estimates, sending shares down 2% premarket.

The retail giant posted revenue of $177.8 billion for the first quarter, beating the analyst consensus of $174.83 billion and representing a 7.3% increase from the prior year. Adjusted earnings per share came in at $0.66, matching analyst expectations.

The company's e-commerce sales surged 26% globally, while the global advertising business grew 37%. However, operating income growth of 5.0% was negatively impacted by 250 basis points from higher fuel costs in distribution and fulfillment.

Shares declined following the earnings release as the company's guidance fell short of Wall Street expectations. For the second quarter, Walmart expects adjusted EPS of $0.72 to $0.74, with a midpoint of $0.73 below the consensus estimate of $0.75. For fiscal 2027, the company reiterated its full-year adjusted EPS guidance of $2.75 to $2.85, with a midpoint of $2.80 below the analyst consensus of $2.92.

"Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery," said John Furner, President and CEO of Walmart.

Walmart U.S. comparable sales grew 4.1%, driven by a 3.0% increase in transactions. The segment's eCommerce sales increased 26%, with strength in store-fulfilled delivery, advertising, and marketplace. Sam's Club U.S. posted comparable sales growth of 3.9%, while Walmart International net sales grew 10.1% in constant currency.

The company's global advertising business showed strength, with Walmart U.S. advertising up 36% and membership fee revenue growing 17.4% globally. For the second quarter, Walmart expects net sales to grow 4% to 5% in constant currency.

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