On May 21, Walmart fell 3.13% in pre-market trading, trading at $126.58/share, with trading volume of $147 million. The decline was triggered by the company's full-year earnings guidance falling short of Wall Street expectations despite a strong first-quarter revenue beat.

Walmart reported Q1 revenue of $177.75 billion, up 7.3% year-over-year and exceeding the consensus estimate of $175.06 billion. Adjusted earnings per share came in at $0.66, matching expectations. Global e-commerce sales surged 26% and advertising revenue grew 37%. However, the company maintained its full-year adjusted EPS guidance of $2.75 to $2.85, with a midpoint of $2.80 well below analysts' consensus of $2.92. Q2 EPS guidance of $0.72 to $0.74 also fell short of the $0.75 estimate.

Management warned that rising fuel costs in delivery and fulfillment operations dragged operating profit growth by 250 basis points, and cautioned that product price increases may become unavoidable if fuel costs remain elevated. With the stock having already gained over 20% year-to-date and trading at historically elevated valuations, the guidance miss raised concerns about growth sustainability.

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