Walmart Inc (NYSE:WMT, XETRA:WMT) shares fell nearly 7% after the grocery chain reported its first quarter earnings, as investors weighed solid revenue growth against softer-than-expected forward guidance.
For the quarter, Walmart reported revenue of $177.75 billion, compared with analyst expectations of $174.95 billion, representing a 7.3% increase from a year earlier
Adjusted earnings per share came in at $0.66, matching consensus estimates. Growth was supported by continued strength in key higher-margin and omnichannel segments. Global e-commerce sales rose 26% year over year, while global advertising revenue increased 37%.
Walmart US comparable sales advanced 4.1%, driven largely by a 3% increase in customer transactions. Membership fee revenue also climbed 17.4% globally. Despite the top-line strength, investor focus shifted to guidance that came in below Wall Street expectations.