Shares of Step (NYSE: WMT) would fall on Thursday. The company's stock fell 6.3% from noon ET. This comes as the S&P 500 (Snpindex: ^GSPC) lost 0.8% and NASDAQ Compound (Nasdaqindex: ^ixig) Lose 0.8%.
The retail giant reported earnings before the market opened on Thursday. While the company introduced a strong quarter, weak guidance was about investors.
Walmart posted Q4 Earnings per share (EPS) of $ 0.66 on sales of $ 180.55 billion. The numbers came a little ahead of analyst estimates for EPS, but only shy of sales estimates.
The quarter was identified by strong global e-commerce growth, up 16% year-on-year, and a solid overall sales growth of 5.3%.
Doug McMillon, CEO of Walmart, said of the performance, “We are gaining market share, our top line is healthy, and we are in great shape with the inventory.” He added that the company will focus on “growth, improve operating margins, and strengthen donation” in the coming year. The company will face challenges in doing so, as the Trump administration continues to raise tariffs on world -wang trading partners.
However, much of what Walmart sells is grown or made in the US, CFO John David Rainey told CNBC that the company was “not going to be completely immune” of tariffs, Especially those set on Mexico and Canada.
This uncertainty and increasing concern for inflation for the retailer led to a sales growth of only 3% to 4% in the next year, lower than the expected 4% from Wall Street. The weak guidelines sent shares lower.
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Why Walmart's stock sinks today Originally published by The Motley Fool