Walmart Stock Drops on Disappointing Earnings Report

The retail giant cites bad winter weather for drop in first-quarter profit and revenue.
4:00 | 05/15/14

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Transcript for Walmart Stock Drops on Disappointing Earnings Report
-- -- brands and a New York has the financial markets close on Wall Street for Thursday may fifteenth this -- story stock. Today a look at Wal-Mart the nation's largest retailer which took a tumble. Thanks to all that winter ice here to break down the numbers -- -- from Yahoo! finance -- and what happened to spark a Wal-Mart sale today. -- like -- what you put -- BK shares were on sale today after the retailer reported disappointing results for the last quarter. Pretty much across the board -- earnings per share came in five cents lighter than analysts were expecting revenue came in about two billion dollars -- -- expected. They issued a weak outlook for the current quarter and this was -- fifth consecutive sales declined so. Travel on -- whenever trial every -- I -- that Wal-Mart. Hasn't exactly. And a look at those first quarter numbers do you see just how big Wal-Mart is but still this was a disappointment. Give us an idea two read take a look at this Tuesday Wal-Mart stock chart. That reflects the sell off what was going down. Yeah ask so what that this not that you're seeing at the reflection their earnings may ask what. What you mentioned that is such a good point is how big Wal-Mart is so even though they missed that sales estimates by two billion dollars Wal-Mart. Sold -- hired in fourteen point two. Billion dollars worth their -- Michelle that's bigger than GDP of countries like Morocco and act would horse that really gives you a sense of Wal-Mart -- That they made less money than last year -- they are expecting their net income was three point six billion dollars vs closed at three point eight billion last year. Not that trend investors want to see say don't get rewarded for didn't simply being big on the street yet to be -- keep growing. Big and bold Wal-Mart president and CEO Doug MacMillan blamed old man winter for his company -- saying the unseasonably cold weather negatively -- -- US sales. But just because people couldn't -- -- Wal-Mart stores can keep them from their computers -- e-commerce sales jumped right. That's true said this is one of the bright spots of the report IE commerce sales jumped 27%. In nearly all of their online and mobile businesses that Wal-Mart has a side double digit sales growth -- they hit steps. Even the Wal-Mart has more than 101000 stores across the globe which is ton of stores. -- -- a they're e-commerce business is actually quite small it's less than 5% their business so even though there -- doing very well in that department are seeing a lot of growth it's a really small piece of the -- They still want to drive customers to those brick and mortar stores are considered though Lauren if there ever was a store too big to fail. Sounds like Wal-Mart does that picture. Absolutely as you said he is the largest retailer in the country it's the largest private employer in -- country. In many ways Wal-Mart is the US economy so when you look at these results that way. It's kind of -- -- on the strength that the economy and consumer and it's concerning one. Wal-Mart yes -- -- -- -- on whether they were very specific about it they said three cents of earnings were impacted by -- they missed out on three cents because of the cold weather they possibly another head winds light. Food stamp cuts and rising health care costs and some of the they blamed on foreign currency fluctuations. But stepping back and looking at the big picture story this is a story of are there is there growth. In the consumer is their strength -- the consumer and even though -- -- government retail sales and coming out showing in March. Strong sales. In -- healthy sales and then in April they kind of fell off. Maybe this is painting a little bit of a different picture one of a little more weakness. -- that's something certainly keep an eye on and when one reason why wal mart's earnings are more significant than just a daily fluctuation in the stock price we will keep an eye on house -- sales go -- -- from Yahoo! finance thank you. You of course can keep up with the latest headlines right here on abcnews.com. Even watching stories stock I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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