On August 20, Wal-Mart declined 6.71% in regular trading, trading at $105.62/share, with turnover of $1.324 billion. Despite beating Q2 revenue and earnings estimates, the stock sold off sharply on weak comparable sales and below-consensus forward guidance.

Wal-Mart reported Q2 revenue of $187.94 billion (vs. estimate $186.87B) and adjusted EPS of $0.81 (vs. estimate $0.74). However, US comparable sales grew only 2.6% excluding fuel, significantly below the 3.8% analyst expectation, marking the weakest quarterly growth in six years. The company cited the Inflation Reduction Act's maximum fair price provisions, which created a 900-basis-point drag on health and wellness comparable sales.

Forward guidance compounded concerns: Q3 adjusted EPS is projected at $0.62-$0.64 versus the $0.68 consensus, while full-year adjusted EPS of $2.80-$2.87 remains below the $2.90 estimate. Full-year net sales growth of 4%-5% also trails the 5.3% market expectation. Additionally, Flipkart's Big Billion Days timing shift is expected to create over 100 basis points of headwind in Q3.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)