Shares of Walmart (NYSE: WMT) fall on Thursday. The shares of the company fell by 6.3% from the afternoon et. This is when the S&P 500 (Snpindex: ^GSPC) lost 0.8% and the Nasdaq Composite (Nasdaqindex: ^IXIC) lost 0.8%.
The retail giant reported income before the market was opened on Thursday. While the company delivered a strong quarter, weak guidance investors concerned.
Walmart placed Q4 profit per share (EPS) of $ 0.66 on a turnover of $ 180.55 billion. The figures were something on analyst estimates for EPS, but just shy of sales estimates.
The quarter was characterized by a strong global growth in e-commerce, an increase of 16% year after year and a solid total revenue growth of 5.3%.
Doug McMillon, CEO of Walmart, said about the performance: “We win market share, our top line is healthy and we are in excellent condition with inventory.” He added that the company will concentrate on “growth, improving operational margins and strengthening ROI” in the coming year. The company will be confronted for challenges, while the Trump administration continues to levy rates on global trading partners.
Much of what Walmart sells, however, is grown or made in the US, CFO John David Rainey told BHMNews that the company “would not be completely immune” of rates, especially those placed on Mexico and Canada.
This uncertainty and growing concern about inflation led the retailer to predict revenue growth from only 3% to 4% in the following year, under the expected 4% from Wall Street. The weak guidance sent shares lower.
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Johnny Rice has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Walmart. The Motley Fool has a disclosure policy.
Why Walmart sinks today, was originally published by De Motley Fool
