The shares of Walmart are down by more than 2% since the US market opened despite the company’s quarterly earnings surpassing analysts’ expectations.
Walmart’s Q3 Earnings Impresses
Walmart, the leading retailer in the United States, reported its third-quarter fiscal earnings earlier today. The company’s Q3 earnings surpassed analysts’ estimates despite inflation affecting the prices of goods across the United States.
The retail giant generated $140.53 billion in the previous quarter, surpassing the $135.60 billion expected by market analysts. The adjusted earnings per share was $1.45, more than the $1.40 predicted by Wall Street experts.
Thanks to the company’s excellent earnings, Walmart had raised its forecast for 2021. It expects the adjusted earnings per share to be around $6.40 versus its prior expectations of between $6.20 and $6.35.
Walmart CEO Doug McMillon said the retail giant is optimistic about the upcoming holidays and is already prepared for the season. He stated that “There’s a level of excitement in the air. You can feel it. I’ve been walking away from these stores with a recurring thought, ‘We’re ready, we have the people, the products, and the prices to deliver a great holiday season.’”
WMT Dips Despite Positive Earnings Report
The shares of Walmart are down by more than 2% since the market opened despite the company reporting better-than-expected earnings figures. At press time, WMT is trading at $142.48 per share, down by 3% over the past few hours.
WMT has underperformed in recent months as it struggles to recover from the Coronavirus pandemic. Over the past 52 weeks, WMT has lost 5% of its value, while its price is only up by 0.09% since the start of 2021.
In contrast, Amazon, its major competitor in the United States, has added more than 9% to its value since the start of the year. WMT could still rally over the coming weeks as the holiday period approaches, and the sales are massive during that period.
This article was originally posted on FX Empire