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Walmart Issues Weak Earnings Outlook Despite Fiscal First-Quarter Sales Beat

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Walmart Issues Weak Earnings Outlook Despite Fiscal First-Quarter Sales Beat

Walmart (WMT) issued a fiscal second-quarter earnings outlook below market estimates on Thursday, while the retail giant reported better-than-expected revenue in the previous three-month period.

The company anticipates per-share adjusted earnings to be in a range of $0.72 to $0.74 for the ongoing quarter, while the current consensus on FactSet is for $0.75. The stock was down 2.2% in the most recent premarket activity.

Sales are pegged to grow by 4% to 5% on a constant currency basis in the current quarter. The Street is looking for reported sales of $186.22 billion.

For the quarter ended April 30, Walmart's total revenue, which includes membership and other income, improved 7.3% to $177.75 billion, topping the average analyst estimate of $174.84 billion. Adjusted EPS advanced to $0.66 from $0.61 in the prior-year period, in line with the Street's view.

"Our results reflect our continued focus on delivering across the enterprise," Chief Executive John Furner said in a statement. "It's a disciplined approach that's helping us grow the business and strengthen returns."

US comparable sales excluding fuel inclined 4.1% buoyed by gains in transactions and average ticket, while e-commerce sales jumped 26%. Same-store sales in Sam's Club rose 3.9%, excluding fuel, amid higher transactions and unit volumes. Revenue in the company's international segment climbed 18% to $35.11 billion.

For fiscal 2027, Walmart continues to project adjusted EPS to come in between $2.75 and $2.85 and sales to increase by 3.5% to 4.5% on a constant currency basis. The Street's current forecast is for non-GAAP EPS of $2.92 and reported sales of $749.05 billion.

On Wednesday, Target (TGT) raised its full-year sales growth outlook on the back of higher-than-expected fiscal first-quarter results.

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