Walmart Cuts Q1 EPS Guidance to $0.63-$0.65 After 5.6% Sales Rise
Walmart reported net sales of $190.7 billion, up 5.6% year-over-year, driven by 27% US e-commerce growth and 12.1% higher adjusted EPS. The company trimmed Q1 EPS guidance to $0.63-$0.65 and full-year EPS to $2.75-$2.85, while highlighting potential food price deflation.
1. Earnings Results
Walmart delivered net sales of $190.7 billion for the quarter, a 5.6% increase year-over-year, with US e-commerce revenue surging 27% and Sam’s Club online sales up 23%. Adjusted earnings per share rose 12.1% to $0.74, slightly above the $0.73 consensus estimate.
2. Guidance Details
The retailer issued Q1 EPS guidance of $0.63-$0.65 versus the $0.69 consensus, and full-year diluted EPS outlook of $2.75-$2.85 compared with $2.97 estimates, reflecting a conservative stance on near-term profitability amid variable consumer demand.
3. Food Price Outlook
CFO commentary highlighted a shift toward food deflation, noting egg prices have dropped significantly from last year and that lower produce costs could boost basket sizes by roughly 25%, enhancing overall customer spend and store traffic.
4. Stock Buyback Plan
Walmart unveiled a new $30 billion stock repurchase program, expanding capital return to shareholders and underscoring confidence in cash flow generation while offsetting dilution from equity compensation.