Walmart Sinks 9% to $103.84 as Tariff-Fueled Q2 Beat Points to Softer Q3

3 articles · Updated · 24/7 Wall St. · Aug 21

$103.84 marked Walmart’s close after a 9% post-earnings drop, even though adjusted EPS beat estimates at $0.81 and revenue rose 6% to $187.94 billion.
750 basis points of operating-income growth came from tariff refunds, and management said much of that benefit was reinvested into lower prices through more than 11,000 rollbacks.
Q3 guidance then landed softly at $0.62 to $0.64 in adjusted EPS and 3.0% to 3.75% constant-currency sales growth, with Flipkart timing expected to shave more than 100 basis points.
29% operating-income growth contrasted with a 9% drop in net income, while Walmart also spent $3.0 billion buying back 25.7 million shares at an average $117.61—above the latest close.
The selloff became Walmart’s worst earnings-day reaction in 10 reported quarters and a fourth straight earnings-day decline, underscoring investor concern that Q2 margin gains were borrowed from Q3.