Walmart share price up 3% despite Q1 results revenue miss
The world's largest retailer had a mixed Q1 report, with high earnings and worse-than-expected revenue.
Walmart share price rose 3% even though the retailer's Q1 revenue fell slightly below Wall Street estimates. While Walmart’s Q1 revenue missed expectations, Walmart’s Q1 earnings beat financial experts’ predictions.
Walmart earnings:key figures
| Earnings per share | $1.13 |
| Revenue | $123.93 billion |
| US same-store sales | + 3.4% |
Walmart’s Q1 results have higher earnings and lower revenue
Walmart’s Q1 earnings per share were $1.13, surpassing the expected $1.02. Walmart’s Q1 revenue grew 1% to $123.93 billion, but was still less than the projected $125.03 billion. Walmart’s Q1 revenue didn't meet expectations because of lower overseas sales and currency volatility.
Same-store sales were up by 3.4%, the highest Q1 same-store sales for the retail chain since 2010. Walmart’s investment in e-commerce paid off, with online sales growing by 37%. Many customers are ordering groceries online and picking them up in stores, boosting Walmart’s Q1 profits.
Walmart hopes to continue that success and compete with Amazon’s grocery delivery service with its own upcoming next-day delivery option for customers.
Chief executive officer (CEO), Doug McMillon, spoke about the positive aspects of Walmart’s Q1 results in a statement.
‘We're especially pleased with the combination of comparable sales growth from stores and e-commerce in the US,’ said McMillon.
McMillon also noted about how the chain is continuing to invest in technology to increase Walmart’s earnings.
‘We're changing to enable more innovation, speed and productivity, and we're seeing it in our results. We’re continuing our transformation to become more of a digital enterprise,’ added McMillon.
How did Walmart’s Q1 results compare to other retailers?
Both Walmart and rival Amazon's earnings reports were positive with increased sales.
Could the US-China trade war impact Walmart’s profits in the future?
The US-China trade war will impact Walmart, which imports many of its items from China. Chief financial officer (CFO), Brett Biggs, noted in a statement that the retailer is closely watching the trade negotiations.
‘We’re monitoring the tariff discussions and are hopeful that an agreement can be reached,’ said Biggs.
Because of the current tariffs, Biggs said Walmart will raise prices on certain items.
'We are going to continue to do everything we can to keep prices low. However, increased tariffs will lead to increased prices for our customers,' said Biggs.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
