Walmart Cuts Q2 EPS Outlook to $0.72–$0.74, Warns of Consumer Strain
WMT•Walmart cut its adjusted Q2 EPS forecast to $0.72–$0.74, below the $0.75 consensus, and signaled similar weakness for the full year, triggering a 7% stock drop. The CFO noted Walmart gas stations saw customers purchasing under 10 gallons for the first time since 2022, illustrating lower-income consumer strain.
1. Guidance Revision
Walmart adjusted its earnings outlook for the current quarter to $0.72–$0.74 per share, below the consensus target of $0.75. It also indicated full-year performance may fall short of prior expectations, attributing this to waning tax refund impact and rising fuel expenses.
2. Consumer Pressure at Pumps
The CFO highlighted that average fill-ups at Walmart gas stations dropped below 10 gallons for the first time since 2022. This shift is interpreted as a clear indicator of financial stress among price-sensitive consumers, especially those at lower income levels.
3. Strong Q1 Revenue Growth
Despite the cautious outlook, first-quarter results showed a 7% rise in revenue to $177.8 billion and a 4.1% increase in same-store sales. Walmart continues to capture market share as inflation-weary shoppers seek value, offsetting some guidance concerns.
