Walmart Misses Earnings and Revenue Expectations Amid Rising Fuel Costs

Walmart's (NASDAQ: WMT) third-quarter guidance fell short of analyst expectations for both earnings and revenue, triggering a sharp market sell-off. The retailer projects adjusted earnings per share (EPS) in the range of $0.62 to $0.64, missing the $0.68 consensus estimate.

Fuel costs above $4 are changing how consumers spend, forcing shoppers to make trade-offs, according to Chief Financial Officer John David Rainey. The pressure on shoppers is visible in transaction data, with growth slowing to 1.5% from 3% in the previous quarter. Average spending per transaction rose just 1.1%, down from 3.1% a year earlier.

Walmart plans to use expected U.S. tariff refund payments to lower consumer prices starting in the third quarter, with $2.9 billion available for price cuts. The retailer's e-commerce grew 24% in the U.S., and its advertising business grew 38% in the U.S.