$Walmart(WMT.US) -4% on first earnings miss since May 2022, due to one-time items and weaker than expected gross margins. 2Q comps and 3Q/FY’26 sales and earnings guidance ahead of expectations. I expect stock to recover today.
2Q: - Adj EPS $.68 vs $.74 est. - SSS comps ex-gas +4.8% vs +4.2% est- US stores comps +4.6% vs +4.1% est. - Revs $177.4B vs $176.1B est- Gross margins 22.8% vs 24.8% est- -$.06 one-time charges reflecting rise in insurance claims, legal charges and restructuring costs.3Q guide:- Sees SSS comps ex-currencies +3.75% to +4.75% vs +3.8% expected.2026 guide: - Adj EPS $2.52 to $2.62, saw $2.50 to $2.60, vs $2.61 est - SSS Comps ex-curr +3.75% to +4.75% vs +3.8% WS est. Prior guide +3% to +4%- Sales forecast raised to $703.1-$709.9B vs $706.2B est and vs 694.7-$701.5B priorCOMMENTARY AND CONTEXT- The profit miss raises questions about how much Walmart’s margins are being squeezed by tariff pressures and how it will approach pricing through the second half of the year to avoid alienating customers.The copyright of this article belongs to the original author/organization.
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