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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US OUTLOOK/OPINION
US retail giant Walmart posted a major Q1 quarterly earnings miss today - and inflation was a key factor.
- Despite better-than-expected revenue ($138.31B vs $131.95B est), earnings came in below 12.2% below estimates (EPS $1.30 vs $1.48 est). Per CNBC's Robert Humm, that was by far Walmart's biggest miss vs consensus since at least 1992.
- The company's CEO said in the release that inflation pressured margins more than expected, especially in food and fuel costs: "bottom line results were unexpected and reflect the unusual environment".
- Two tentative macro conclusions from this: first, the 7% drop in the stock pre-market on the earnings suggests that inflation risks to earnings may not yet be fully priced into equity markets.
- Second, insofar as Walmart is a bellwether for the economy and consumer spending, their newly revised upward full-year sales outlook but decrease in profit estimates suggests that rising revenues are mainly a function of inflation and not robust consumer demand.
Source: Walmart
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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