Walmart Sounds a Warning on the Economy
Walmart (NYSE: WMT) is the largest company in the world by revenue. When it speaks, it's worth listening to, since no other company has its finger more firmly on the pulse of the American consumer. Walmart receives nearly 10% of every dollar in non-automotive retail spending in the U.S., and it's also the country's (and the world's) largest employer, making it highly influential on the American economy as well as a useful barometer for the economy and for investors of all stripes.
In its second-quarter earnings report, out Tuesday morning, Walmart had mostly good news to share investors. Comparable sales jumped 9.3%, driven by strong performance in food and general merchandise like home improvement, sporting goods, outdoor, and electronics. Revenue rose 5.6% to $137.7 billion, topping estimates at $135.5 billion, while adjusted earnings per share jumped from $1.27 to $1.56, well ahead of the Wall Street consensus at $1.25.
Image source: Walmart.
Source Fool.com
