Walmart plunges on lower earnings forecast
- 9 years ago
Walmart shares plunged sharply Wednesday after the U.S. retailing giant jolted financial markets by forecasting a 6% to 12% earnings drop in fiscal year 2017.
Shares of the Bentonville, Ark. company were down nearly 9.6% at $60.34 in afternoon trading on the unexpected news Walmart executives delivered at the company's annual investors conference with Wall Street analysts, held in New York City.
The analysts had expected Walmart to forecast higher earnings for the fiscal year that starts in February as the company battles chief rival Amazon and other competitors.
Instead, they heard a bleak outlook that triggered one of the largest ever declines in the value of the retailer's shares.
Separately, Walmart also announced a new $20 billion share buyback program over the next two years, and said the company had retired the $8.6 billion remaining on its 2013 repurchase authorization.
Shares of the Bentonville, Ark. company were down nearly 9.6% at $60.34 in afternoon trading on the unexpected news Walmart executives delivered at the company's annual investors conference with Wall Street analysts, held in New York City.
The analysts had expected Walmart to forecast higher earnings for the fiscal year that starts in February as the company battles chief rival Amazon and other competitors.
Instead, they heard a bleak outlook that triggered one of the largest ever declines in the value of the retailer's shares.
Separately, Walmart also announced a new $20 billion share buyback program over the next two years, and said the company had retired the $8.6 billion remaining on its 2013 repurchase authorization.