Walmart WMT released its fiscal first-quarter earnings report on May 21. Here’s Morningstar’s take on Walmart’s earnings and stock.

Key Morningstar Metrics for Walmart

• : $70.00
• : ★

• Morningstar Economic Moat Rating

  : Wide

• Morningstar Uncertainty Rating

  : Medium

What We Thought of Walmart’s Q1 Earnings

Walmart’s first-quarter results included 7.3% net sales growth and adjusted EPS of $0.66 (up 8.1%). Adjusted operating income grew 5%, navigating an incremental $175 million fuel cost hit, while global e-commerce and advertising revenue surged 26% and 37%, respectively.

Why it matters: As the consumer begins to feel more stretched amid macroeconomic pressures, we believe Walmart US’ six-quarter-high traffic growth (3%) indicates that…