Walmart (WMT) Misses Q1 EPS by 18c, Revenue Beats; Lowers Guidance

May 17, 2022 7:00 AM EDT

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(Updated - May 17, 2022 7:01 AM EDT)

Walmart (NYSE: WMT) reported Q1 EPS of $1.30, $0.18 worse than the analyst estimate of $1.48. Revenue for the quarter came in at $141.6 billion versus the consensus estimate of $138.88 billion.

  • Walmart U.S. grew comp sales1 3.0% and gained market share in grocery
Fiscal 2023 Q2 and full year guidance
The following guidance reflects the Company’s updated expectations for Q2 and fiscal year 2023 and is provided on a non-GAAP basis as the Company cannot predict certain elements which are included in reported GAAP results, including the effects of foreign exchange translation and the changes in fair value of the Company’s equity investments. Growth rates reflect an adjusted basis for prior year results. The company’s guidance assumes a generally stable consumer in the U.S., higher supply chain costs, continued pressure from inflation, and mix of products and formats globally.
MetricGuidance: Feb. 17, 2022Guidance: May 17, 2022
Consolidated net sales
Increase about 3% in constant currency
Excluding divestitures3, increase about 4%
Increase about 4% in constant currency
Excluding divestitures3, increase 4.5% to 5%
Comp sales growth
Walmart U.S., slightly above 3%, ex. fuel
Walmart U.S., about 3.5%, ex. fuel
Consolidated operating income
Increase about 3% in constant currency
Excluding divestitures3, increase at a rate higher than net sales
Decrease about 1% in constant currency
Excluding divestitures3, flat versus last year
Effective tax rate25% to 26%No change
EPS
Increase mid single-digits
Excluding divestitures3, increase 5% to 6%
Decrease about 1%
Excluding divestitures3, flat versus last year
Capital expendituresUpper end of 2.5% to 3% of net sales with a focus on supply chain, automation, customer-facing initiatives and technologyNo change
Updated guidance for Q2
MetricGuidance: Feb. 17, 2022Guidance: May 17, 2022
Consolidated net salesNot providedIncrease over 5%
Comp sales growthNot providedWalmart U.S., increase 4% to 5%, ex. fuel
Consolidated operating incomeIncrease low to mid single-digitsFlat to up slightly
EPSIncrease low to mid single-digitsFlat to up slightly
1 See additional information at the end of this release regarding non-GAAP financial measures.
2 $8.3 billion remaining of $20 billion authorization approved in February 2021. The company repurchased approximately 17 million shares in Q1 fiscal 2023.
3 We completed the sale of our operations in the U.K. and Japan in the first quarter of fiscal 2022.

For earnings history and earnings-related data on Walmart (WMT) click here.



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