Sundaram: WMT Guidance Underwhelms, High Margins Show Promise

Walmart (WMT) shares sold off after posting underwhelming guidance in Thursday's earnings. Arun Sundaram points out that the previous quarter was strong but warns continuing inflation pressures on American consumers will cut into Walmart's profits. The retail giant's valuations also ballooned, though Arun argues it's justified through growth in several of its high-margin business additions. Walmart (WMT) shares sold off after posting underwhelming guidance in Thursday's earnings. Arun Sundaram points out that the previous quarter was strong but warns continuing inflation pressures on American consumers will cut into Walmart's profits. The retail giant's valuations also ballooned, though Arun argues it's justified through growth in several of its high-margin business additions.