On May 21, Walmart fell 5.2% in regular trading, trading at $124.94/share with trading volume of $823 million. The decline was triggered by disappointing forward guidance despite solid Q1 results.

Walmart reported fiscal Q1 revenue of $177.75 billion, up 7.3% year-over-year and beating estimates, while adjusted EPS of $0.66 matched consensus. Global e-commerce sales surged 26% and advertising revenue grew 37%. However, the company maintained its full-year adjusted EPS guidance of $2.75-$2.85, with the midpoint of $2.80 falling short of the analyst consensus of $2.92. Q2 adjusted EPS guidance of $0.72-$0.74 also trailed the $0.75 estimate.

Management warned that rising fuel costs in delivery and fulfillment operations dragged operating profit growth by 250 basis points in the quarter, with equal or greater headwinds expected next quarter. If elevated fuel prices persist, consumer-facing product prices may need to rise. With the stock already up over 20% year-to-date at historically elevated valuations, the conservative outlook intensified concerns about growth sustainability amid a challenging consumer spending environment.

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