We’ve always considered Walmart’s (WMT) earnings report to mark to unofficial end to earnings season. While there are still plenty of other reports left to get through, the vast majority of companies have already reported their performance metrics for the prior quarter. This morning WMT reported and ended earnings season on a positive note. The company handily exceeded EPS forecasts, revenues were inline with forecasts, and the company reaffirmed guidance. In reaction to the news, shares rallied over 3.5%, and after closing at $99.99 on Friday jumped back above the triple-digit mark this morning. Read all about overnight events around the world and this morning’s news in today’s Morning Lineup.
Today’s rally in WMT will mark the fourth straight quarter that the company has had a positive reaction to earnings, but one thing to keep in mind is that following each of those three prior reports it didn’t pay to chase the strength. As our Earnings Explorer tool illustrates, following each of those three prior positive opens, the stock gave up at least some of those initial gains during the trading day.
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