Investors may choose to look beyond Walmart's (WMT) earnings beat and zero in on several areas of concern.
The world's largest retailer beat Wall Street's first quarter earnings estimates by 2 cents a share on Thursday. Shares were relatively unchanged in pre-market trading.
But there weak spots that include:
- Walmart U.S. same store sales rose 2.1%, below analyst forecasts for 2.5% growth.
- Gross profit margin at Walmart's U.S. business fell 23 basis points from the prior year amid investments in eCommerce and lower prices.
- Gross profit margin at Sam's Club also fell 23 basis points owing to inflationary pressures and actions taken to drop prices.
Watch more analysis below.