Stock Market Futures Move Lower After WMT Stock Falls On Cutting Guidance
U.S. stock futures are dropping early Tuesday morning this week. Overall, this could be the result of Walmart (NYSE: WMT) cutting its profit outlook for the second quarter and full year. Shares of WMT stock have dropped over 8% in premarket trading on Tuesday.
Commenting on this is Walmart CEO Doug McMillon. He said, “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars.” Moving on, as of 8:51 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.04%, 0.47%, and 0.70% respectively.
Walmart Stock Falls After Cutting Profit Guidance For Q2 & Full Year
WMT stock is in the headlines after hours on Monday as shares slid over 9%. This comes after the company provided an update Monday afternoon, lowering its profit outlook for the second quarter and full year. The company cut guidance amid persistent inflation and inventory concerns.
The Arkansas-based retail giant now expects operating income for the second quarter and full year to drop 13% to 14% and 11 to 13%, respectively. Also, they reported that adjusted earnings per share are estimated to fall to 8 to 9% and 11 to 13%, over the same time period. All while, Walmart had its estimated EPS to be “flat to up slightly” for the secondq quarter and to drop only 1% when it reported in May.
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Coca-Cola Beats Second Quarter Earning Estimates
Moving along, Coca-Cola (NYSE: KO) is making headlines in the stock market on Tuesday morning. The company reported its second quarter fiscal earnings before the opening bell on Tuesday. In the report, KO reported earnings per share of $0.70 on revenue of $11.3 billion. In comparison to Wall Street’s consensus earnings estimate was earnings per share of $0.67 on revenue of $10.6 billion.
The company reported it estimates full-year 2022 fiscal earnings of $2.44 to $2.46 per share. Previously, Coca-Cola’s previous guidance was earnings per share of $2.51 to $2.55 per share and the current street’s consensus earnings estimate is $2.46 per share for the full year 2022 fiscal year. Furthermore, shares of KO stock are trading marginally higher premarket on Tuesday, up 1.38% at $63.05 a share.
Commenting further is KO’s Chairman and CEO James Quincey, “Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment.” When considering all of this, is KO stock on your watchlist Tuesday morning?
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